6. Percent of Sales Method Longbranch sales last year (2019) were $500 thousand. The company is expecting a 24% growth in sales this year and typically has an after-tax profit margin of 5% and a dividend payout ratio of 40%, and this is not expected to change. Current assets and current liabilities will spontaneously increase with sales. Capital assets are operating at excess capacity. 2019 $95 000 SI10 000 $115 000 $320 000 $170 000 $490 000 LONGBRANCH Assets Cash Accounts receivable Inventory Total Current Assets Capital Assets Total Assets Liabilities & Equity Accounts payable Accrued wages Accrued taxes Total Current liabilities LT Debt Common Stock Retained Earnings Shareholder's Equity Total Liabilities & Shareholders' Equity $105 000 $86 000 $52 000 $243 000 $122 000 $50 000 $75 000 S125 000 $490 000 A) Given the expected sales growth for Longbranch, use the Percent-of-Sales method to calculate Required New Funding (Additional debt at the bank) to finance sales growth in 2020. Show your work in 5 steps as done in class