The Longbranch Western Wear Company has the following financial statements, which are representative of the company's historical average Income Statement Sales Expenses Earnings before interest and taxes Interest Earnings before taxes Taxes Earnings after taxes Dividends $250,000 203,200 $46,800 2,300 $ 44,500 12,000 $ 32,500 $ 9,750 Assets Cash Accounts receivable Inventory Current assets Capital assets Balance Sheet Liabilities and Shareholders' Equity $5,000 Accounts payable $6,300 13,000 Accrued wages 1,500 18,000 Accrued taxes 4,200 $36,000 Current liabilities $12,000 73,000 Notes payable 7,300 Long-term debt 16,500 Common stock 23,000 Retained earnings 50,200 $109,000 Total liabilities and equity $189,000 Total assets Longbranch 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 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 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 o wherever it is required.) Balance Sheet Liabilities Current assets 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 ter 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) $ $ Current assets (Click to select) Current liabilities (Click to select) (Click to select) (Click to select) (Click to select) $