Executive Fruits financial manager believes that sales in 2015 could rise by as much as 20% or by as little as 5%. Assets and costs change in proportion to sales, debt remains constant, and no new equity financing occurs. a. Recalculate the first-stage pro forma financial statements under these two growth assumptions and calculate the required external financing (All figures are in thousands). (Enter your answers in thousands.) Base Case 20% Growth 5% Growth INCOME STATEMENT Revenue $ 11,000 $ $ Cost of goods sold 9,900 EBIT $ 1,100 $ $ Interest 220 Earnings before taxes $ 880 $ $ State and federal tax 352 Net income $ 528 $ $ Dividends 352 Retained earnings $ 176 $ $ BALANCE SHEET Assets Net working capital $ 1,100 $ $ Fixed assets 4,400 Total assets $ 5,500 $ $ Liabilities and shareholders' equity Long-term debt $ 2,200 $ $ Shareholders' equity 3,300 Total liabilities and shareholders' equity $ 5,500 $ $ Required external financing $ $ b. Assume any required external funds will be raised by issuing long-term debt and that any surplus funds will be used to retire such debt. Prepare the completed (second-stage) pro forma balance sheet. (Enter your answers in thousands.) BALANCE SHEET Base Case 20% Growth 5% Growth Assets Net working capital $ 1,100 $ $ Fixed assets 4,400 Total assets $ 5,500 $ $ Liabilities and shareholders' equity Long-term debt $ 2,200 $ $ Shareholders' equity 3,300 Total liabilities and shareholders' equity $ 5,500 $ $