Payable as the balancing entry for future discretionary financing needs. b. Compare Armadillo's current ratio and debt ratio (total liabilities/total assets) before the growth in sales and after. What was the effect of the expanded sales on these two dimensions of Armadillo's financial condition? c. What difference, if any, would have resulted if Armadillo's sales had risen to $6 million in one year and $7 million only after two years? Discuss only; no calculations are required. (Related to Checkpoint 17-1 on page 472) (Discretionary financing needs) Fishing in Charter, Inc. estimates that it investment in assets each dollar of new sales. However, 5 cents in profits are product 1 reach dollar of additional sales, of which 1 can be reinvested in the firm. If sales rise by $500,000 next year from their current level of $5 million, and the ratio of spontaneous liabilities to sales is.15, what will be the firm's need for discretionary financing