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Long-term Liabilities Santana Rey has consulted with her local banker and is considering financing an expansion of her business by obtaining a long-term bank loan.

Long-term Liabilities

Santana Rey has consulted with her local banker and is considering financing an expansion of her business by obtaining a long-term bank loan. Selected account balances at March 31, 2017, for Business Solutions follow.

Total assets

$120,268

Total liabilities

$875

Total equity

$119,393

Required

What are some factors Santa Rey should consider before borrowing the funds?

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