$(12-5)$Long$-$Term Financing Needed

At year$-$end $2019,$ Wallace Landscaping's total assets were $$2\mathrm{.}17$ million, and its accounts payable were $$560,000.$ Sales, which in $2019$ were $$3\mathrm{.}5$ million, are expected to increase by $35\%$ in $2020.$ Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable. Common stock amounted to $$625,000$ in $2019,$ and retained earnings were $$395,000.$ Wallace has arranged to sell $$195,000$ of new common stock in $2020$ 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 $2020.($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 $5\%,$ and $45\%$ of earnings will be paid out as dividends.

What were Wallace's total long$-$term debt and total liabilities in $2019?$

How much new long$-$term debt financing will be needed in $2020?$

$($Hint: AFN $-$ New stock $=$ New long$-$term debt.$)$