subject- business finance

The Longbranch Western Wear Company has the following financial statements, which are representative of the company's historical average OK Income Statement Sales Expenses Earnings before interest and taxes Interest Earnings before taxes Taxes Earnings after taxes Dividends $250,000 188,3ee $ 61,700 3,200 $ 58,5ee 21,eee $ 37,500 $ 11,250 ncos Assets Cash Accounts receivable Inventory Current assets Capital assets Balance Sheet Liabilities and Shareholders' Equity $6,000 Accounts payable $11,200 22, eee Accrued wages 2,480 27,000 Accrued taxes 11,400 SSS,600 Current liabilities $25,00 82.ee Notes payable 8,200 Long-term debt 21,600 Common stock 32, eae LUU WA Retained earnings Total liabilities and equity Total assets 34, 50,889 $137, eee $137, eee Longbranch is expecting a 30 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 a. Using a percent-of-sales method, determine whether Longbranch Western Wear has external financing needs. (Input the amount as a positive value.) The firm (Click to select) $ in (Click to select) b. Prepare a pro forma balance sheet win 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 O wherever it is required.) Balance Sheet Liabilities $ Current assets (Click to select) (Click to select) Click to select) (Click to select) (Click to select) (Click to select) v Liabilities Current assets (Click to select) (Click to select) (Click to select) $ v (Click to select) (Click to select) (Click to select) V Current assets (Click to select) $ Current liabilities (Click to select (Click to select) (Click to select) (Click to select) $ ok V 05 Total assets Total liabilities and equity $ c. Calculate the current ratio and total debt to assets ratio for each year (Round the final answers to 2 decimal places.) Year 1 Year 2 X Current ratio Total debt/ assets