Next year, California Cement Company will increase its plant, property, and equipment by $$6,000,000$ with a plant expansion. The inventories will grow by $80\%,$ accounts receivable will grow by $70\%,$ and the company will reduce marketable securities by $60\%$ to help finance the expansion. Assume all other asset accounts remain the same and the company will use long$-$term debt to finance the remaining expansion costs $($no change in common stock or retained earnings$).$ Using this information and the balance sheet provided for California Cement Company for $2017,$ prepare a pro forma balance sheet for $2018.$ How much additional long$-$term debt will the company need using this pro forma balance sheet?

California Cement Company

Balance Sheet for the Year Ending December $31,2017$

Current Assets

Cash $$1,447,000$

Marketable Securities $1,129,000$

Accounts Receivable $3,769,000$

Inventories $2,601,000$

Total Current Assets $ $8,946,000$

Long$-$term Assets

Plant, Property & Equip. $ $6,760,000$

Goodwill $4,082,000$

Intangible Assets $1,506,000$

Total Long$-$term Assets $$12,348,000$

TOTAL ASSETS $$21,294,000$

Current Liabilities

Accounts Payable $ $6,125,000$

Other Current Liabilities $ $1,198,000$

Total Current Liabilities $ $7,323,000$

Long$-$term Liabilities

Long$-$Term Debt $ $2,488,000$

Other Long$-$term Liabilities $ $1,524,000$

Total Long$-$Term Liabilities $ $4,012,000$

TOTAL LIABILITIES $$11,335,000$

Owner$$s Equity

Common Stock $ $2,493,000$

Retained Earnings $ $7,466,000$

TOTAL OWNER$$S EQUITY $ $9,959,000$

TOTAL LIABILITIES & OWNER$$S EQUITY $$21,294,000$

Answer $(2$ points$)$: