The Honest Joe has the following financial statements, which are representative of the company's stocaverage Help 1 $200,000 Sales Expenses Earnings before interest and taxes Interest Earnings before taxes Taxes Earnings after taxes Dividends $ 15, TIN $ 32.000 10.NO $ 22,000 8,800 Assets Cash Accounts receivable Inventory Current assets Capital assets Balance Sheet Liabilities and Shareholders Equity $7,000 Accounts payable $11,00 23,000 Accrued wages 2,500 28.000 Accrued taxes 12,200 $58,00 Current liabilities $26.000 83,eee Notes payable 8,300 Long-term debt 21,500 Common stock 33,000 Retained earnings 52,200 $141,000 Total liabilities and equity $141,000 Total assets Honest Joe 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 a. Using a percent-of-sales method, determine whether Honest Joe has external financing needs. (Input the amount as a positive value.) The firm (Click to select) in (Click to select) Prenare a no forma halance sheet with any financinn arinstment made to nntes navable and erece if any shall reine innom Honest Joe 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 libilities vary directly with sales a. Using a percent-of-sales method, determine whether Honest Joe has external financing needs input the amount at 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.) Balance Sheet Liabilities Current assets (Click to select Click to select) (Click to select) v (Click to select) (Click to select) Click to select) Current assets (Click to select) $ Current liabilities (Click to select) (Click to select) (Click to select (Click to select) V 5 Total liabilities and equity Total assets b. Prepare a pro forma balance sheet with any financing adjustment made to notes payable and excess, if any, she debt. (Input all answers as positive values. Be sure to list the assets and liabilities in order of their liquidity. Do empty spaces; input a O wherever it is required.) 0206 18 Balance Sheet $ Current sets (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) Current assets (Click to select) Current liabilities (Click to select) (Click to select) (Click to select) (Click to select) v $ 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 decim Year 1 Year 2 X Current ratio Total debt/ assets %