1. River Company's 2021 financial statements can be found below. Sales is expected to increase by 25% next year, this increase is expected to be carried out without any capital asset expansion. It will be done through more efficient utilization of current assets in the existing stores. The dividend payout ratio will remain unchanged and forecasted taxes are $26,200. Management is concerned whether the company will need additional external funds. a) Using percent of sales method, determine whether the company will need external financing needs. b) Prepare a pro forma income statement and balance sheet. Any external financing requirements will require financial adjustments to be made to the notes payable account. If external financing is not required, the excess funds will first used to reduce the notes payable, the remaining different will go towards reducing long-term debt. 1. River Company's 2021 financial statements can be found below. Sales is expected to increase by 25% next year, this increase is expected to be carried out without any capital asset expansion. It will be done through more efficient utilization of current assets in the existing stores. The dividend payout ratio will remain unchanged and forecasted taxes are $26,200. Management is concerned whether the company will need additional external funds. a) Using percent of sales method, determine whether the company will need external financing needs. b) Prepare a pro forma income statement and balance sheet. Any external financing requirements will require financial adjustments to be made to the notes payable account. If external financing is not required, the excess funds will first used to reduce the notes payable, the remaining different will go towards reducing long-term debt