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Long-Term Financing Needed At year-end 2019, Wallace Landscaping's total assets were $2.41 million, and its accounts payable were $440,000. Sales, which in 2019 were $2.5
Long-Term Financing Needed At year-end 2019, Wallace Landscaping's total assets were \$2.41 million, and its accounts payable were $440,000. Sales, which in 2019 were $2.5 million, are expected to increase by 25% in 2020 . Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilies other than accounts payable. Common stock amounted to $420,000 in 2019, and retained earnings were $315,000. Wallace has arranged to sell $105,000 of new common stock in 2020 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 2020 . (Because the debt is dividends. a. What was Wallace's total long-term debt in 2019? Do not round intermediate calculations. Enter your answer in dollars. For example, an answer of $2 million should entered as 2,000,000. Round your answer to the nearest dollar. $ What were Wallace's total liabilities in 2019? Do not round intermediate calculations. Enter your answer in dollars. For example, an answer $2 million should be entere as 2,000,000. Round your answer to the nearest dollar. $ b. How much new long-term debt financing will be needed in 2020? (Hint: AFN - New stock = New long-term debt.) Do not round intermediate calculations. Enter your answer in dollars. For example, an answer of $2 million should be entered as 2,000,000. Round your answer to the nearest dollar. $
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