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At year - end 2 0 2 1 , total assets for Arrington Inc. were $ 1 . 9 million and accounts payable were $
At yearend total assets for Arrington Inc. were $ million and accounts payable were $ Sales, which in were $ million, are expected to increase by in Total assets and accounts payable are proportional to sales, and that relationship will be maintained; that is they will grow at the same rate as sales. Arrington typically uses no current liabilities other than accounts payable. Common stock amounted to $ in and retained earnings were $ Arrington plans to sell new common stock in the amount of $ The firm's profit margin on sales is ; of earnings will be retained.
A What were Arrington's total liabilities in Write out your answer completely. For example, million should be entered as Round your answer to the nearest cent.
$
B How much new longterm debt financing will be needed in Hint: AFN New stock New longterm debt. Write out your answer completely. For example, million should be entered as Do not round intermediate calculations. Round your answer to the nearest cent.
$
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