awarded ored The Longbranch Western Wear Company has the following financial statements, which are representative of the company's historical average. Sales Expenses Income Statement Earnings before interest and taxes Interest Earnings before taxes Taxes DOK Earnings after taxes Dividends $200,000 164,700 $35,300 3,300 $ 32,000 10,000 $ 22,000 $8,800 Balance Sheet Assets Liabilities and Shareholders' Equity Cash Accounts receivable. $7,000 Accounts payable: 23,000 Accrued wages $11,300 2,500 Inventory Current assets 28,000 Accrued taxes 12,200 $58,000 Current Habilities. Capital assets. $26,000 83,000 Notes payable Total assets Long-term debt Common stock Retained earnings $141,000 Total liabilities and equity 8,300 21,500 33,000 $2,200 $141,000 Longbranch is expecting a 25 percent Increase in sales next year, and management is concerned about the company's need for external funds. The increase in sales is expected to be carried out without any expansion of capital assets; instead, it will be done through more efficient asset utilization in the existing stores. Of liabilities, only current liabilities vary directly with sales. instead, it will be done In the existing stores. Of liabilities, only current liabilities vary directly with sales. a. Using a percent-of-sales method, determine whether Longbranch Western Wear has external financing needs. (Input the amount as a positive value.) b. Prepare a pro forma balance sheet with any financing adjustment made to notes payable and excess, if any, shall reduce long term debt. (Input all answers as positive values. Be sure to list the assets and liabilities in order of their liquidity. Do not leave any empty spaces; input a O wherever it is required.) Current assets Balance Sheet Liabilities The firm $ 0 0 0 Current assets 000 0 0 0 00 Current liabilities 0 0 0 0 O 00000 Total assets Total liabilities and equity