The Baldwin company currently has the following balances on their balance sheet:

Assets $255,569

Common Stock $55,426

Retained earnings $52,621

Suppose next year the Baldwin Company generates $20,000 in net profit, pays $10,000 in dividends, assets change to $151,000, and common stock remains unchanged. What must their total liabilities be next year? Select: 1

Buy 200 units of capacity. Finance the $6,800 purchase entirely with a new bond.
	Buy 100 units of capacity. Finance the $3,400 purchase entirely with a new bond.
	Buy 100 units of capacity. Finance the $3,400 purchase entirely with a stock issue.
	Buy 200 units of capacity. Finance the $6,800 purchase entirely with a stock issue.