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At year-end 2019, total assets for Arrington Inc. were $1.9 million and accounts payable were $310,000. Sales, which in 2019 were $2.30 million, are expected
At year-end 2019, total assets for Arrington Inc. were $1.9 million and accounts payable were $310,000. Sales, which in 2019 were $2.30 million, are expected to increase by 25% in 2020. Total assets and accounts payable are proportional to sales, and that relationship will be maintained that is, they will grow at the same rate as sales. Arrington typically uses the currenties other than accounts payable. Common stock amounted to $390,000 in 2019, and retained earnings were $240,000. Arrington plans to sell new common stock in the amount of $105,000. The firm's profit margin on sales is 5% of earnings will be retained What were Arrington's total abilities in 2019? Write out your answer completely. For example, 25 million should be entered 25,000,000. Round your answer to the nearest cest b. How much new long-term debt financing will be needed in 20207 (Hint: Awstock new long-term debt. Write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not round intermediate calculations. Round your answer to the nearest cont
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