J$.$ T$.$ Jarmon, Inc.

BALANCE SHEET

$12/31/2018\%$ OF SALES

Current assets $$2,800,00020\%$

Net fixed assets $7,000,00050\%$

Total $$9,800,000$

LIABILITIES AND OWNER'S EQUITY

Accounts payable $$2,800,00020\%$

Long$-$term debt $1,300,000$ NAa

Total liabilities $$4,100,000$

Common stock $1,000,000$ NA

Paid$-$in capital $3,300,000$ NA

Retained earnings $1,400,000$

Common equity $5,700,000$

Total $$9,800,000$

$($Financial forecastinglong dashdiscretionary financing needs$)$ J$.$ T$.$ Jarmon, Inc. has been in business for only $1$ year, and the CFO expects that the relationship between firm sales and its operating$$ expenses, current$$ assets, net fixed$$ assets, and current liabilities will remain at their current proportion of sales.

Last$$ year, Jarmon had $$$$14$ million in sales and net income of $$$$1\mathrm{.}40$ million. The firm anticipates that next$$ year's sales will reach $$$$17\mathrm{.}500$million$,$ with net income rising to $$$$1\mathrm{.}54$ million. Given its present high rate of$$ growth, the firm retains all its earnings to help defray the cost of new investments.

The$$ firm's balance sheet for $2018$ is found in the popup$$ window: LOADING.... Using the information$$ provided, make an estimate of$$ Jarmon's financing requirements or total assets for $2019$ and its discretionary financing needs $($DFN$).$

Question content area bottom

Part $1$

What are$$ Jarmon's financing requirements or total assets for$2019?$

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enter your response here $($Round to the nearest$$ dollar.$)$

Part $2$

What are$$ Jarmon's discretionary financing needs $($DFN$)$ for$2019?$

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enter your response here$($Round to the nearest$$ dollar.$)$