Executive Fruits financial manager believes that sales in 2015 could rise by as much as 20% or by as little as 10%. 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 10% Growth INCOME STATEMENT Revenue $ 2,500 $ $ Cost of goods sold 2,250 EBIT $ 250 $ $ Interest 50 Earnings before taxes $ 200 $ $ State and federal tax 80 Net income $ 120 $ $ Dividends 80 Retained earnings $ 40 $ $ BALANCE SHEET Assets Net working capital $ 250 $ $ Fixed assets 1,000 Total assets $ 1,250 $ $ Liabilities and shareholders' equity Long-term debt $ 500 $ $ Shareholders' equity 750 Total liabilities and shareholders' equity $ 1,250 $ $ 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 10% Growth Assets Net working capital $ 250 $ $ Fixed assets 1,000 Total assets $ 1,250 $ $ Liabilities and shareholders' equity Long-term debt $ 500 $ $ Shareholders' equity 750 Total liabilities and shareholders' equity $ 1,250 $ $