7. Problem 17.08 (Long-Term Financing Needed) ebook Problem Walkthrough At year-end 2021, total assets for Arrington Inc. were $1.9 million and accounts payable were $330,000. Sales, which in 2021 were $2.30 million, are expected to increase by 30% in 2022. Total assets and accounts payable are proportional to sales, and that relationship will be maintained that is, they will grow at the same rate as sales. Arrington typically uses no current liabilities other than accounts payable. Common stock amounted to $465,000 in 2021, and retained earnings were $205,000. Arrington plans to sell new common stock in the amount of $125,000. The firm's profit margin on sales is 3% 55% of earnings will be retained a. What were Arrington's total abilities in 2021? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest cent b. How much new long-term debt financing will be needed in 2022? (Hint: AFN - New stock - New long term debt.) Write out your answer completely. For example, 25 miron should be entered as 25,000,000. Do not round Intermediate calculations. Round your answer to the nearest cent, $ 8. Problem 17.09 (Sales Increase) eBook Paladin Furnishings generated $2 million in sales during 2021, and its year-end total assets were $1.5 million. Also, at year-end 2021, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,000 of accrued liabilities. Looking ahead to 2022, the company estimates that its assets must increase by $0.75 for every $1.00 increase in sales. Paladin's profit margin is 6%, and its retention ratio is 45%. How farge of a sales increase can the company achieve without having to raise funds externally write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not round Intermediate calculations, Round your answer to the nearest cent