A year and 2016, Wallace Landscapings total assets were $2.17 million, and it accounts payable worth $560,000dollars. Sales, which in 2016 worth $3.5 million, Are expected to increase by 35% in 2017. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable. Common stock amount to $625,000 and in 2016, and other retained earnings were $395,000dollars. Wallace has arranged to sell $195,000 dollars of new common stock in 2017 to meet some of its financing needs. The remainder of his financing needs will be met by issuing new long-term debt the end of 2017. Because the data is added at the end of the year, there will be no additional interest expense due to the new debt). Its that profit margin on sales is 5%, and 45% of earnings will be paid out as dividends.

A. What were Wallaces long-term debt and total liabilities in 2016?

B. How much new long-term debt financing will be needed in 2017? (Hint: AFN - new stock = new long-term debt).