At year-end 2016, Wallace Landscaping’s total assets were $1.9 million, and its accounts payable were $325,000....

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At year-end 2016, Wallace Landscaping’s total assets were $1.9million, and its accounts payable were $325,000. Sales, which in2016 were $2.5 million, are expected to increase by 25% in 2017.Total assets and accounts payable are proportional to sales, andthat relationship will be maintained. Wallace typically uses nocurrent liabilities other than accounts payable. Common stockamounted to $455,000 in 2016, and retained earnings were $330,000.Wallace has arranged to sell $105,000 of new common stock in 2017to meet some of its financing needs. The remainder of its financingneeds will be met by issuing new long-term debt at the end of 2017.(Because the debt is added at the end of the year, there will be noadditional interest expense due to the new debt.) Its net profitmargin on sales is 5%, and 35% of earnings will be paid out asdividends.
a. What was Wallace's total long-term debt in 2016? Do not roundintermediate calculations. Round your answer to the nearestdollar.
b. What were Wallace's total liabilities in 2016? Do not roundintermediate calculations. Round your answer to the nearestdollar.
c. How much new long-term debt financing will be needed in 2017?(Hint: AFN - New stock = New long-term debt.) Do not roundintermediate calculations. Round your answer to the nearestdollar.

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Answer to Part a b Total Assets 1900000 Total Assets Total Liabilities Total Stockholders Equity Total Stockholders Equity Common Stock Retained Earnings Total Stockholders Equity 455000 330000 Total Stockholders Equity 785000 See Answer

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At year-end 2016, Wallace Landscaping’s total assets were $1.9million, and its accounts payable were $325,000. Sales, which in2016 were $2.5 million, are expected to increase by 25% in 2017.Total assets and accounts payable are proportional to sales, andthat relationship will be maintained. Wallace typically uses nocurrent liabilities other than accounts payable. Common stockamounted to $455,000 in 2016, and retained earnings were $330,000.Wallace has arranged to sell $105,000 of new common stock in 2017to meet some of its financing needs. The remainder of its financingneeds will be met by issuing new long-term debt at the end of 2017.(Because the debt is added at the end of the year, there will be noadditional interest expense due to the new debt.) Its net profitmargin on sales is 5%, and 35% of earnings will be paid out asdividends.a. What was Wallace's total long-term debt in 2016? Do not roundintermediate calculations. Round your answer to the nearestdollar.b. What were Wallace's total liabilities in 2016? Do not roundintermediate calculations. Round your answer to the nearestdollar.c. How much new long-term debt financing will be needed in 2017?(Hint: AFN - New stock = New long-term debt.) Do not roundintermediate calculations. Round your answer to the nearestdollar.