Baldwin Products Company anticipates reaching a sales level of $5.4 million in one year. The company expects carnings after taxes during the next year to equal $380,000. 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 and income statement for Baldwin during Year 1 follow. Baldwin Products Company Balance Sheet as of December 31, Year 1 Cash $ 250,000 Accounts payable $ 580,000 Accounts Receivable 360,000 Notes payable 172,000 Inventories 518,000 Long-term Debt 200,000 Fixed assets, net 1,252,000 Stockholders equity 1,428,000 Total assets $2,380,000 Total buities and equity $2,380,000 . DO 5. Income Statement for the Year Ending December 31, Year 1 Sales $3,600,000 Expenses, including interest and taxes 3,440,000 Earnings after taxes 160,000 a. Using the percentage of sales method, calculate the additional financing Baldwin Products will need over the next year at the $5.40 million sales tevel Show the pro forma balance sheet for the company as of December 31, Year 2, assuming that a sales tevel of $5.40 million is reached. Assume that the additional financing needed is obtained in the form of additional notes payable. Round your answers to the nearest dollar Additional Financing Needed: 570000 Pro Forma Balance Sheet as of Dec. 31, Year 2 Assets Liabilities Cash $ Accounts Payable 375000 Accounts Receivable 540000 Notes Payable Inventories 777000 Long-term Debt Foxed Assets, net 1878000 Stockholders' equity Total Assets $ Total Liabilities and 870000 742000 200000 1758000 Pro Forma Balance Sheet as of Dec. 31, Year 2 Assets Liabilities Cash $ Accounts Payable 375000 870000 Accounts Receivable 540000 Notes Payable 742000 Inventories 777000 Long-term Debt 200000 Fixed Assets, net 1878000 Stockholders' equity 1758000 Total Assets Total abilities and 3570000 stockholders' Equity 1758000 . Suppose that the Baldwin Product management feels that the average collection period on its additional sales--that is, sales over 13.60 million will be 55 days. Instead of the current level. By what amount will this increase in the average collection period increase the financing nended by the company over the next year? Round your answer to the nearest dollar c. If the Baldwin Products' banker requires the company to maintain a current ratio equal to 1.5 or greater, what is the maximum amount of additional financing that can be in the form of bank borrowings (notes payable)? Round your answer to the nearest dollar Baldwin Products Company anticipates reaching a sales level of $5.4 million in one year. The company expects carnings after taxes during the next year to equal $380,000. 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 and income statement for Baldwin during Year 1 follow. Baldwin Products Company Balance Sheet as of December 31, Year 1 Cash $ 250,000 Accounts payable $ 580,000 Accounts Receivable 360,000 Notes payable 172,000 Inventories 518,000 Long-term Debt 200,000 Fixed assets, net 1,252,000 Stockholders equity 1,428,000 Total assets $2,380,000 Total buities and equity $2,380,000 . DO 5. Income Statement for the Year Ending December 31, Year 1 Sales $3,600,000 Expenses, including interest and taxes 3,440,000 Earnings after taxes 160,000 a. Using the percentage of sales method, calculate the additional financing Baldwin Products will need over the next year at the $5.40 million sales tevel Show the pro forma balance sheet for the company as of December 31, Year 2, assuming that a sales tevel of $5.40 million is reached. Assume that the additional financing needed is obtained in the form of additional notes payable. Round your answers to the nearest dollar Additional Financing Needed: 570000 Pro Forma Balance Sheet as of Dec. 31, Year 2 Assets Liabilities Cash $ Accounts Payable 375000 Accounts Receivable 540000 Notes Payable Inventories 777000 Long-term Debt Foxed Assets, net 1878000 Stockholders' equity Total Assets $ Total Liabilities and 870000 742000 200000 1758000 Pro Forma Balance Sheet as of Dec. 31, Year 2 Assets Liabilities Cash $ Accounts Payable 375000 870000 Accounts Receivable 540000 Notes Payable 742000 Inventories 777000 Long-term Debt 200000 Fixed Assets, net 1878000 Stockholders' equity 1758000 Total Assets Total abilities and 3570000 stockholders' Equity 1758000 . Suppose that the Baldwin Product management feels that the average collection period on its additional sales--that is, sales over 13.60 million will be 55 days. Instead of the current level. By what amount will this increase in the average collection period increase the financing nended by the company over the next year? Round your answer to the nearest dollar c. If the Baldwin Products' banker requires the company to maintain a current ratio equal to 1.5 or greater, what is the maximum amount of additional financing that can be in the form of bank borrowings (notes payable)? Round your answer to the nearest dollar