Clyde's Well Servicing has the following financial statements. The balance sheet items, profit margin, and dividend payout have maintained the same relationships the past couple of years; these relationships are anticipated to hold in the future. Clyde's has excess capacity, so there is no expected increase in capital assets. Sales Cost of goods sold Gross profit Selling and administrative expense Amortization Income Statement Earnings before interest and taxes Interest Earnings before taxes Taxes Earnings available to common shareholders Dividends paid $2,000,000 1,260,000 740,000 400,000 55,000 285,000 50,000 235,000 61,000 $174,000 $104,000

Clyde's Well Servicing has the following financial statements. The balance sheet items, profit margin, and dividend payout have maintained the same relationships the past couple of years; these relationships are anticipated to hold in the future. Clyde's has excess capacity, so there is no expected increase in capital assets. o. Using a percent-of-sales method, determine whether Clyde's can handle a 30 percent sales increase without using external financing. If so. what is the need? b. If the average collection period of recelvables could be held to 43 days, what would the need be for external financing? All other relationships remain the same. (Negotive onswer should be indicoted by o minus sign.) New funds required (surplas) s. Suppose the following results with the increased sales of $600.000. The first $75,000 of any new funds would be shortterm debt and then long-tem debt. then long-term debt. c-1. What new funds would be required? (Enter your onswers in thousands, rounded to 2 decimol places.) c-2. Prepare the pro forma balance sheet. (Input all answers in thousands. Be sure to list the ossets ond liabilities in order of their liquidity, Round the final answer to 1 decimal place.) c-2. Prepare the pro forma balance sheet. (Input all answers in thousands. Be sure to list the assets and liabilities in order of th liquidity, Round the final answer to 1 decimol place.)