Excel Online Structured Activity: Long-Term Financing Needed At year-end 2015, Wallace Landscaping's total assets were $1.8 million and its accounts payable were $425,000,5aies, which in 2015 were $2.8 million, are expected to increase by 15% in 2016 . Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liablities other than accousts payable. Common stock amounted to $460,000 in 2015 , and retained earnings were $335,000. Wallace has arranged to sell $105,000 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 additonal interest expense due to the new debt.) Its net profit margin on sales is 4%, and 40% of earnings will be paid out as dividends. The data has been collected in the Microsoft Excel Online flie below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet a. What was Wallace's total long-term debt in 2015 ? Round your answer to the nearest dollar. $ What were Waliace's total liabilities in 2015? Do not round intermediate calculations. Round your answer to the nearest dollar: 5. b. How much new long-term debt financing will be needed in 2016 ? (Hint: AFN - New stock = New long-term debt.) Do not round intermedlate calculations. Round your answer to the nearest dollar. 4 A B C Long-Term Financing Needed \begin{tabular}{lr} Original total ssets & $1,800,000 \\ \hline Original accounts payable & $425,000 \\ \hline Original sales & $2,800,000 \\ % Growth in sales & 15.00% \\ Original stock & $460,000 \\ \hline Original retained earnings & $335,000 \\ \hline New stock issue & $105,000 \\ \hline Profit margin & 4.00% \\ \hline Payout rate & 40.00% \end{tabular} Debt Calculations: Original long-term debt Original total liabilities Additional Funds Needed Calculation: Required \% increase in assets % increase in spontaneous liabilities New Sales, S1 Change in Sales, S Required increase in assets Increase in spontaneous liabilities Increase in retained earnings New stock issue New debt needed = AFN - new stock