Horizon Logistics is under scrutiny for potentially hiding liabilities. The company has several long-term contracts with vendors. However, it appears that not all liabilities are recorded. The balance sheet shows $1,000,000 in long-term liabilities, but contract reviews suggest obligations totaling $1,500,000. Additionally, there are $200,000 in short-term liabilities not reported.

Requirement: Calculate the total liabilities and discuss the implications of hiding these liabilities on the financial health of the company.

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