Next year, California Cement Company will increase its Plant, Property, and Equipment (PPE) by $6,000,000 with a plant expansion. The inventories will grow by 80%, accounts receivable will grow by 70%, and marketable securities will be reduced by 60% to help finance the expansion. If all other asset accounts remain the same and long-term debt will be used to finance the remaining costs of the expansion (no change in common stock or retained earnings), prepare a pro forma balance sheet for 2011. How much additional debt will be estimated using this pro forma balancesheet?

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California Cement Company Balance Sheet for the Year Ending 2010 Current Assets Cash Marketable Securities Accounts Receivable Inventories Total Current Assets $1,447,000 1,129,000 3,769,000 2,601000 $ 8,946,000 Long-term Assets Plant, Property & Equip. Goodwil1 Intangible Assets Total Long-term Assets S 6,760,000 4,082,000 1.506.000 S12.348.000 $21.294.000 TOTAL ASSETS Current Liabilities Accounts Payable S 6,125,000 Other Curent Liabilities $ 1198,000 Total Current Liabilities S 7,323,000 Long-term Liabilities S 2,488,000 Long-Term Debt Other Long-term Liab1.524.000 Total Long-Term Liabilities S 4012,000 $11,335,000 TOTAL LIABILITIES Owner's Equity Common Stock Retained Earnings S 2,493,000 $ 7466,000 TOTAL OWNER'S EQUITY TOTAL LIABILITIES & OWNER'S EQUITY 9.959.000 S21.294.000