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The Longbranch Westem Wear Company has the following financlal statements, which are representative of the company's historical average. Longbranch is expecting a 2 5 percent
The Longbranch Westem Wear Company has the following financlal statements, which are representative of the company's historical
average.
Longbranch is expecting a 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 efficlent asset utilization in the existing stores. Of llabilities, only current liabilities vary directly with sales.
a Using a percentofsales method, determine whether Longbranch Western Wear has external financing needs. Input the amount os
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 o wherever it is required.
c Calculate the current ratio and total debt to assets ratio for each year. Round the final answers to decimal places.
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