### What was ambroses total debt in 2012

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Long-term financing needed

At year-end 2012, total assets for Ambrose Inc. were \$1.8 million and accounts payable were \$305,000. Sales, which in 2012 were \$2.7 million, are expected to increase by 30% in 2013. 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. Ambrose typically uses no current liabilities other than accounts payable. Common stock amounted to \$480,000 in 2012, and retained earnings were \$330,000. Ambrose plans to sell new common stock in the amount of \$170,000. The firm's profit margin on sales is 3%; 50% of earnings will be retained.

1. What was Ambrose's total debt in 2012? Write out your answer completely. For example, 25 million should be entered as 25,000,000.

2. How much new long-term debt financing will be needed in 2013? Write out your answer completely. For example, 25 million should be entered as 25,000,000.

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