Need calculations/formulas shown as well

Suzy Q Muffins is expecting a 20 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 liabiilities, only current liabilities vary directly with sales. a. Using the percent-of-sales method, determine whether Suzy Q Muffins has external financing needs.(9 marks) \% expected increase Profit margin Payout ratio Change in sales (\$) Spontaneous assets as \% of sales Spontaneous liabilities as % of sales Does your company require funds? Explain based on your calculations ( 2 marks): Change in assets Change in liabilities Change in retained earnings External funding needed b. Prepare a pro forma balance sheet with any financing adjustment made to notes payable. c. Calculate the current ratio and total debt to assets ratio for each year ( 4 marks). (8 marks) Balance Sheet Discuss your findings (4 marks) \begin{tabular}{ll} Assets & Liabilities and Shareholders' Equity \\ Cash & Accounts payable \\ Account receivable & Accrued wages \\ Inventory & Accrued taxes \\ Current assets & Current liabilities \\ Capital assets & Notes payable \\ & Long-term debt \\ & Shareholders' Equity \\ & Common shares \\ & Retained earnings \\ & Total liabilities \\ \hline Total assets & and shareholders' equity \\ \hline \hline \end{tabular} Suzy Q Muffins is expecting a 20 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 liabiilities, only current liabilities vary directly with sales. a. Using the percent-of-sales method, determine whether Suzy Q Muffins has external financing needs.(9 marks) \% expected increase Profit margin Payout ratio Change in sales (\$) Spontaneous assets as \% of sales Spontaneous liabilities as % of sales Does your company require funds? Explain based on your calculations ( 2 marks): Change in assets Change in liabilities Change in retained earnings External funding needed b. Prepare a pro forma balance sheet with any financing adjustment made to notes payable. c. Calculate the current ratio and total debt to assets ratio for each year ( 4 marks). (8 marks) Balance Sheet Discuss your findings (4 marks) \begin{tabular}{ll} Assets & Liabilities and Shareholders' Equity \\ Cash & Accounts payable \\ Account receivable & Accrued wages \\ Inventory & Accrued taxes \\ Current assets & Current liabilities \\ Capital assets & Notes payable \\ & Long-term debt \\ & Shareholders' Equity \\ & Common shares \\ & Retained earnings \\ & Total liabilities \\ \hline Total assets & and shareholders' equity \\ \hline \hline \end{tabular}