At year-end 2015, Wallace Landscaping's total assets were $1.6 milion and its accounts payable were $315.000. Sales, which in 2015 were $2.2 million, are expected to increase by 25% in 2016. Total amets and accounts payable are proportional to sales, and that relationship will be maintained. Wisiace typically uses no current abilities other than accounts payable. Common stock mounted to $375,000 in 2015, and retained earnings were $265,000. Wallace has arranged to sell $155,000 of new common stock in 2016 to meet some of as financing needs. The remainder of its financing needs will be met by issuing new long-term debe at the end of 2016. (Because the debt is added at the end of the year there will be no additional interest expense due to the new debt.) Its net profit margin on sales is 4%, and 40% of earrings will be paid out as dividends .
The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to awer the questions below. a: What was Wallace's total long term debt in 20157 Round your answer to the nearest dolla $ ___
What were Wallace's total abilities in 2015? Do not round intermediate calculations. Round your answer to the nearest do $____
b. How much new long-term debt financing will be needed in 20167 (Hint: AFN-New stock New long-term deb.) Do not round intermediate calculations. Round your answer to the nearest dollar $ ____
