1. At year-end 2016, total assets for Arrington Inc. were $1.6million and accounts payable were $365,000. Sales, which in 2016were $2.6 million, are expected to increase by 30% in 2017. Totalassets and accounts payable are proportional to sales, and thatrelationship will be maintained; that is, they will grow at thesame rate as sales. Arrington typically uses no current liabilitiesother than accounts payable. Common stock amounted to $410,000 in2016, and retained earnings were $255,000. Arrington plans to sellnew common stock in the amount of $55,000. The firm's profit marginon sales is 3%; 35% of earnings will be retained.

1. What were Arrington's total liabilities in 2016? Write out youranswer completely. For example, 25 million should be entered as25,000,000. Round your answer to the nearest cent.
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3. How much new long-term debt financing will be needed in 2017?Write out your answer completely. For example, 25 million should beentered as 25,000,000. Do not round your intermediate calculations.Round your answer to the nearest cent. (Hint: AFN - Newstock = New long-term debt.)  
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Earleton Manufacturing Company has $3 billion in sales and$900,000,000 in fixed assets. Currently, the company's fixed assetsare operating at 80% of capacity. What level of sales could Earleton have obtained if it had beenoperating at full capacity? Write out your answer completely. Roundyour answer to the nearest whole number. $   What is Earleton's target fixed assets/sales ratio? Round youranswer to two decimal places. % If Earleton's sales increase 30%, how large of an increase infixed assets will the company need to meet its target fixedassets/sales ratio? Write out your answer completely. Do not roundintermediate calculations. Round your answer to the nearest wholenumber. $