Ans: a. $590,000; $1,150,000. b. $238,563.

Please show computation on how to get to answer.

(12-5) At year-end 2019, Wallace Landscaping's total assets were $2.17 million, and its acLong-Term counts payable were $560,000. Sales, which in 2019 were $3.5 million, are expected to Financing Needed increase by 35% in 2020 . 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 amounted to $625,000 in 2019 , and retained earnings were $395,000. Wallace has arranged to sell $195,000 of new common stock in 2020 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2020 . (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its net profit margin on sales is 5%, and 45% of earnings will be paid out as dividends. a. What were Wallace's total long-term debt and total liabilities in 2019 ? b. How much new long-term debt financing will be needed in 2020? (Hint: AFN New stock = New long-term debt.)