Hamon Corporation is projecting its balance sheet and it arrives at the following numbers for the coming years. At the end of year one, total assets equal $10,500,000 while total liabilities and equity equal $9,500,000. At the end of year two, total assets equal $12,500,000 and total liabilities and equity equals 13,000,000. Please indicate how much money will Hamon need to borrow money or have left over in year one and in year two. Please indicate if the amount needs to be borrowed or is left over?

Your answers will look something like this:

Hamon will (need to borrow of have excess cash pick one) of $XXXXX at the end of year one.

Hamon will (need to borrow of have excess cash pick one) of $XXXXX at the end of year two.