1. Baldwin Products Company anticipates reaching a sales level of $6 million in 2023, which was $4 million last year. The company expects earnings after taxes during the next year to equal $400 000. During the past several years, the company has been paying $50 000 in dividends to its stockholders. The company expects to continue this policy for at least the next year. The actual balance sheet for Baldwin during 2022 is as follows: Baldwin Products Company Balance Sheet as of December 31, 2022 $ 200 000 400 000 Accounts payable S.T.bank credit L.T. debt 1 200 000 500 000 200 000 1 000 000 2 300 000 500 000 2 300 000 Stockholder's equity Total liabilities & equity a. Using percent of sales method, prepare a proforma balance sheet for the company as of December 2023, and calculate the additional financing Baldwin products will need over the next year at the $6 million sales level. b. Suppose that the Baldwin Product's management feels that the average collection period on its additional sales that is, sales over $4 million- will be 60 days, instead of the current level. By what amount will this increase in the average collection period increase the financing needed by the company over the next year? Cash Accounts receivable Inventories Fixed assets, net Total assets I $ 600 000

1. Baldwin Products Company anticipates reaching a sales level of $6 million in 2023, which was $4 million last year. The company expects earnings after taxes during the next year to equal $400000. During the past several years, the company has been paying $50000 in dividends to its stockholders. The company expects to continue this policy for at least the next year. The actual balance sheet for Baldwin during 2022 is as follows: Baldwin Products Company Balance Sheet a. Using percent of sales method, prepare a proforma balance sheet for the company as of December 2023, and calculate the additional financing Baldwin products will need over the next year at the $6 million sales level. b. Suppose that the Baldwin Product's management feels that the average collection period on its additional sales -that is, sales over $4 million- will be 60 days, instead of the current level. By what amount will this increase in the average collection period increase the financing needed by the company over the next year