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, 100 $ 46,900 AN $ 43,500 11,00 $ 32,500 $9.750 Cash Accounts receivable Inventory Current assets Capital assets Balance Sheet Liabilities and Shareholders' Equity $7,000 Accounts payable 314,000 24,000 Accrued as 2.600 29,000 Accrued taxes 13,000 560,000 Current abilities 330,000 54,000 Notes payable 0,000 Long-term debt 22.000 Common stock 34,000 Retained earnings 49.600 $144,000 Total liabilities and equity $144,000 Total assets 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. Or liabilities, only current liabilities vary directly with sales. 6. Using a percent of sales method, determine whether Longbranch Western Wear has external financing needs. (input the amount as a positive value.) a. Using a percent-of-sales method, determine whether Longbranch Western Wear has external financing needs. (Input the amount os a positive value.) The firm has $ 21107 in Surplus funds 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 O wherever it is required.) Balance Sheet Liabilities $ Current assets Cash Accounts receivable Inventory $ 9100 31200 37700 Accounts payable Accrued wagos Accrued taxes V 18720 3380 16900 V $ Current assets Capital Assets 78000 84000 $ Current liabilities Notes payable Long-term debt Common stock Retained oamings V 3 39000 0 9825 34000 79175 Total assets 162000 Total liabilities and equity 162000 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 Current ratio Total debt assets