15. Required External Financing. Executive Fruit's financial manager believes that sales in 2009 could rise by as much as 20% or by as little as 5%. (LO3)

a. Recalculate the first-stage pro forma financial statements (Table 18-5) under these two assumptions. How does the rate of growth in revenues affect the firm's need for external funds?

b. Assume any required external funds will be raised by issuing long-term debt and that any surplus funds will be used to retire such debt. Prepare the completed (second-stage) pro forma balance sheet.