$\quad$ $\quad$ $\quad$ $\quad$ Oscar's Incredible Eatery (\$ Thousands)

$\quad$ $\quad$ $\quad$ $\quad$ Oscar's Incredible Eatery (\$ thousands)
$\quad$ $\quad$ Income Statement for the year ending Dec. 31, 2014
$\begin{array}{lr}\hline \text { Net sales } & 17,300 \\\text { Cost of goods sold } & 10,600 \\\text { Depreciation } & \underline{3,250 }\\\text { Earnings before interest and taxes } & 3,450 \\\text { Interest expense } &\underline{ 680 }\\\text { Earnings before tax } & 2,770 \\\text { Tax } &\underline{ 940} \\\text { Earnings after tax } & 1,830 \\\text { Dividends } & 450\end{array}$

$\quad$ $\quad$ $\quad$ $\quad$$\text { Balance Sheet as of Dec. } 31,2014$
$\begin{array}{lrlr}\text { Cash } & 350 & \text { Accounts payable } & 1,920 \\\text { Accounts receivable } & 940 & \text { Long-term debt } & 3,500 \\\text { Inventory } &\underline{ 2,360 }& \text { Common stock } & 7,500 \\ \text { Total current assets } & 3,650 & \text { Retained earnings } & 1,580 \\\text { Net fixed assets } & 10,850 &&---\\\text {Total assets}&14.500&\text {Total liab. \& equity}&14,500 \\\hline\end{array}$

-Please refer to Oscar's financial statements above.Assume a constant debt-equity ratio,net profit margin and dividend payout ratio,and further assume all of Oscar's expenses,assets and current liabilities vary directly with sales.What is the pro forma net fixed asset value for next year if sales are projected to increase by 7.5 percent?

A) $10,857.50
B) $10,931.38
C) $11,663.75
D) $15,587.50
E) $18,987.50