At year-end 2008, total assets for Bertin, Inc. were 1.2 million and accounts payable were $375,000. Sales, which in 2008 were $2.5 million, are expected to increase by 25% in 2009. 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. Bertin typically uses no current liabilities other than accounts payable. Common stock amounted to $425,000 in 2008, and retained earnings were $295,000. Bertin plans to sell new common stock in the amount of $75,000. The firm's profit margin on sales is 6%; 60% of earnings will be retained.

a. What was Bertin's total debt in 2008?

b. How much new, long-term debt financing will be needed in 2009? (Hint: AFN - New Stock = New long-term debt).