t year-end 2021, Wallace Landscaping's total assets, all of which are used in operations, were $2.34 m 495,000. Sales, which in 2021 were $2.8 million, are expected to increase by 30% in 2022. Total asset roportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilitie ommon stock amounted to $590,000 in 2021, and retained earnings were $245,000. Wallace has arrar tock in 2022 to meet some of its financing needs. The remainder of its financing needs will be met by i f 2022. (Because the debt is added at the end of the year, there will be no additional interest expense hargin on sales is 3%, and 40% of earnings will be paid out as dividends. . What was Wallace's total long-term debt in 2021? Do not round intermediate calculations. Enter your answer of $2 million should be entered as 2,000,000. Round your answer to the nearest dollar. What were Wallace's total liabilities in 2021? Do not round intermediate calculations. Enter your ansv
t year-end 2021, Wallace Landscaping's total assets, all of which are used in operations, were $2.34 m 495,000. Sales, which in 2021 were $2.8 million, are expected to increase by 30% in 2022. Total asset roportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilitie ommon stock amounted to $590,000 in 2021, and retained earnings were $245,000. Wallace has arrar tock in 2022 to meet some of its financing needs. The remainder of its financing needs will be met by i f 2022. (Because the debt is added at the end of the year, there will be no additional interest expense hargin on sales is 3%, and 40% of earnings will be paid out as dividends. . What was Wallace's total long-term debt in 2021? Do not round intermediate calculations. Enter your answer of $2 million should be entered as 2,000,000. Round your answer to the nearest dollar. What were Wallace's total liabilities in 2021? Do not round intermediate calculations. Enter your ansv
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Can you get the last answer please? It is not 354,820.
Transcribed Image Text:At year-end 2021, Wallace Landscaping's total assets, all of which are used in operations, were $2.34 million, and its accounts payable were
$495,000. Sales, which in 2021 were $2.8 million, are expected to increase by 30% in 2022. Total assets and accounts payable are
proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable.
Common stock amounted to $590,000 in 2021, and retained earnings were $245,000. Wallace has arranged to sell $155,000 of new common
stock in 2022 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end
of 2022. (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 3%, and 40% of earnings will be paid out as dividends.
a. What was Wallace's total long-term debt in 2021? Do not round intermediate calculations. Enter your answer in dollars. For example, an
answer of $2 million should be entered as 2,000,000. Round your answer to the nearest dollar.
$
What were Wallace's total liabilities in 2021? Do not round intermediate calculations. Enter your answer in dollars. For example, 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 2022? (Hint: AFN - New stock = New long-term debt.) Do not round
intermediate calculations. Enter your answer in dollars. For example, an answer of $2 million should be entered as 2,000,000. Round your
answer to the nearest dollar.
$
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