end sales. Depreciation is expected to increase at the same rate as sales. Interest costs are expected to remain unchanged. The tax rate is expected to remain at 40%. On the basis of that information, what will be the forecast for Roberts year-end net income LONG-TERM FINANCING NEEDED At year-end 2018, total assets for Arrington Inc. were $1.8 million and accounts payable were $450,000. Sales, which in 2018 were $3.0 milling are expected to increase by 25% in 2019. Total assets and accounts payable are proportions to sales, and that relationship will be maintained; that is, they will grow at the same rate sales. Arrington typically uses no current liabilities other than accounts payable. Common stock amounted to $500,000 in 2018, and retained earnings were $4/5.000. Arrington plans to sell new common stock in the amount of $130,000. The firm's profit margin on sales 5%; 35% of earnings will be retained. a. What were Arrington's total liabilities in 2018? b. How much new long-term debt financing will be needed in 20197 (Hint: AFN - New stock = New long-term debt.) ated S m lon ing