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Ed's Waterbeds has made the following sales projections for the next six months. All sales are credit sales. March April May $ 38,eee June 44,6ee

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Ed's Waterbeds has made the following sales projections for the next six months. All sales are credit sales. March April May $ 38,eee June 44,6ee July 33,eee August $ 42,000 50,000 52,000 Sales in January and February were $41,000 and $40,000 respectively Experience has shown that 10 percent of total sales are uncollectible, 35 percent are collected in the month of sale, 45 percent are collected in the following month, and 10 percent are collected two months after sale. a. Prepare a monthly cash receipts schedule for the firm for March through August Ed's Waterbeds Cash Receipts Schedule January February March April Sales $ $ $ $ Collections of current sales Collections of prior month's sales Collections of sales 2 months earlier Total cash receipts $ $ apter 46 Saved Help Save & Exit The Longbranch Western Wear Company has the following financial statements, which are representative of the company's historical average Submit Income Statement Sales Expenses Earnings before interest and taxes Interest Earnings before taxes Taxes Earnings after taxes Dividends $20,000 149,00 $ 50,00 2,700 $ 45,000 16,00 $32,000 $ 16,00 3338 ON Assets Cash Accounts receivable Inventory Current assets Capital assets Balance Sheet Libilities and shareholders testy 39.000 Accounts payable 12.00 17.000 Accrued was 1,90 22.000 Accrued as 2.400 $40,000 Current liabilities $12.000 77.000 Notes payable 7,700 Longe det 18,500 Common stock 27,000 Metained earnings 59,00 $125,000 Total Halities and equity $125,000 Total assets Longbranch is expecting a 25 percent increase in sales next year, and management concerned about the companys need for external funds. The increase in sales is expected to be canled out without any expansion of capital assets instead. It will be done The more in the worlar Swed Help Seve & Exit Submit 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. o. Using a percent-of-sales method, determine whether Longbranch Western Wear has external financing needs. (Input the amount os a positive value.) The firm (Click to select) $ in (Click to select 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 0 wherever it is required.) Talance sheet Current Assets Limites Click to see Cack towe Click to see (Click to selech Ck to select Click to see 5 V 5 Current sets Click to select) Curl Click to (Cick to set Clex to sot Click to Total assets Total tilities and city c. Calculate the cutent ratio and total debt to assets ratio for each year, (Round the final answers to 2 decimal places.) Year! Year Current ratio Total det

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