At year-end 2021, total assets for DLS Inc. were $1.8 million and accounts payable were $450,000. Sales, which in 2021 were $3.0 million, are expected to increase by 25% in 2022. 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.

DLS typically uses no current liabilities other than accounts payable. Common stock amounted to $500,000 in 2021, and retained earnings were $475,000. DLS plans to sell new common stock in the amount of $130,000. The firms profit margin on sales is 5%; 65% of earnings will be distributed as dividends.

How much new long-term debt financing will be needed in 2022?