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. $300,000 248,600 $ 51,400 2,400 $ 49,000 13,000 $ 36,000 Dividends Cash Accounts receivable Inventory Current assets Capital assets Total assets $ 14,400 Balance Sheet Assets Liabilities and Shareholders' Equity $6,000 Accounts payable 14,000 Accrued wages $2,400 1,600 $39,000 74,000 19,000 Accrued taxes Current liabilities Notes payable Long-term debt Common stock Retained earnings 5,000 $9,000 7,400 17,000 24,000 55,600 $113,000 Total liabilities and equity $113,000 Longbranch 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 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 as a positive value.) The firm has $ 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 a O wherever it is required.) Current assets (Click to select) (Click to select) (Click to select) Current assets (Click to select) Total assets Balance Sheet Liabilities (Click to select) $ (Click to select) (Click to select) Current liabilities $ (Click to select) (Click to select) (Click to select) (Click to select) 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.) Current ratio Total debt/ assets Year 1 Year 2 X % %