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At year-end 2018, total assets for Arrington Inc. were $1.2 million and accounts payable were $385,000....

At year-end 2018, total assets for Arrington Inc. were $1.2 million and accounts payable were $385,000. Sales, which in 2018 were $2.10 million, are expected to increase by 30% in 2019. 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 $455,000 in 2018, and retained earnings were $370,000. Arrington plans to sell new common stock in the amount of $115,000. The firm's profit margin on sales is 5%; 65% of earnings will be retained.

How much new long-term debt financing will be needed in 2019? (Hint: AFN - New stock = New long-term debt.) 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.

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