Long-Term Financing NeededAt year-end 2019, Wallace Landscaping's total assets were $2.20 million, and its accounts payable were $505,000.Sales, which in 2019 were $3.0 million, are expected to increase by 10% in 2020. Total assets and accounts payable areproportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other thanaccounts payable. Common stock amounted to $415,000 in 2019, and retained earnings were $305,000. Wallace hasarranged to sell $70,000 of new common stock in 2020 to meet some of its financing needs. The remainder of itsfinancing needs will be met by issuing new long-term debt at the end of 2020. (Because the debt is added at the end ofthe year, there will be no additional interest expense due to the new debt.) Its net profit margin on sales is 3%, and50% of earnings will be paid out as dividends.a. What was Wallace's total long-term debt in 2019? Do not round intermediate calculations. Enter your answer indollars. For example, an answer of $2 million should be entered as 2,000,000. Round your answer to the nearestdollar.$What were Wallace's total liabilities in 2019? Do not round intermediate calculations. Enter your answer in dollars. Forexample, an answer of $2 million should be entered as 2,000,000. Round your answer to the nearest dollar.$b. How much new long-term debt financing will be needed in 2020? (Hint: AFN - New stock = New long-term debt.) Donot round intermediate calculations. Enter your answer in dollars. For example, an answer of $2 million should beentered as 2,000,000. Round your answer to the nearest dollar.$

Long term-liabilities refer to the sum value of borrowings made by an entity or a business that are…

ear-end 2019, Wallace Landscaping's total assets were $2.20 million, ar es, which in 2019 were $3.0 million, are expected to increase by 10% in portional to sales, and that relationship will be maintained. Wallace typic ounts payable. Common stock amounted to $415,000 in 2019, and retail inged to sell $70,000 of new common stock in 2020 to meet some of its ncing needs will be met by issuing new long-term debt at the end of 201 year, there will be no additional interest expense due to the new debt.) of earnings will be paid out as dividends. What was Wallace's total long-term debt in 2019? Do not round intermed dollars. For example, an answer of $2 million should be entered as 2,000 dollar. $ "What were Wallace's total liabilities in 2019? Do not round intermediate 000

ear-end 2019, Wallace Landscaping's total assets were $2.20 million, ar es, which in 2019 were $3.0 million, are expected to increase by 10% in portional to sales, and that relationship will be maintained. Wallace typic ounts payable. Common stock amounted to $415,000 in 2019, and retail inged to sell $70,000 of new common stock in 2020 to meet some of its ncing needs will be met by issuing new long-term debt at the end of 201 year, there will be no additional interest expense due to the new debt.) of earnings will be paid out as dividends. What was Wallace's total long-term debt in 2019? Do not round intermed dollars. For example, an answer of $2 million should be entered as 2,000 dollar. $ "What were Wallace's total liabilities in 2019? Do not round intermediate 000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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