At year-end 2016, total assets for Arrington Inc. were $1.8 million and accounts payable were $335,000....

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At year-end 2016, total assets for Arrington Inc. were $1.8million and accounts payable were $335,000. Sales, which in 2016were $2.2 million, are expected to increase by 20% 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 $380,000 in2016, and retained earnings were $225,000. Arrington plans to sellnew common stock in the amount of $160,000. The firm's profitmargin on sales is 7%; 45% of earnings will be retained.
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.
$

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.)
$
PLEASE LABEL ANSWERS VERY CLEARLY*

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At year-end 2016, total assets for Arrington Inc. were $1.8million and accounts payable were $335,000. Sales, which in 2016were $2.2 million, are expected to increase by 20% 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 $380,000 in2016, and retained earnings were $225,000. Arrington plans to sellnew common stock in the amount of $160,000. The firm's profitmargin on sales is 7%; 45% of earnings will be retained.What were Arrington's total liabilities in 2016? Write out youranswer completely. For example, 25 million should be entered as25,000,000. Round your answer to the nearest cent.$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.) $****PLEASE LABEL ANSWERS VERY CLEARLY*****