At year-end 2015, Wallace Landscaping's total assets were $ 2.17 million and its account payable were $ 560,000. Sales, which in 2015 were $ 3.5 million, are expected to increase by 35% in 2016. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than account payables. Common stock amounted to $ 625,000 in 2015, and retained earnings were $ 395,000. Wallace has arranged to sell $ 195,000 of new common stock in 2016 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 2016. ( 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 2015? b.How much new long-term debt financing will be needed in 2016? ( Hint: AFN - New stock = New long - term debt)