The Longbranch Western Wear Company has the following financial statements, which are representative of the company's historical average. Income Statement Sales $200,000 154,500 S 45,500 Expenses Earnings before interest and taxes Interest 3,500 $ 42,000 Earnings before taxes Taxes 12,000 Earnings after taxes $30,000 s 15,000 Dividends Balance Sheet Liabilities and Shareholders Equity Accounts payable Accrued wages Assets Cash $9,000 25,000 $15,500 2,700 13,800 $32,000 Accounts receivable Inventory 30,000 $64,000 85,000 Accrued taxes Current liabilities Notes payable Long-tern debt Common stock Current assets Capital assets 8,500 22,500 35,000 51,000 Retained earnings Total assets $149,000 Total liabilities and equity $149,000 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 efficlent 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 seler $ (Click to sele in 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 Illquidity. Do not leave any empty spaces; input a O wherever it is required.) Balance Sheet Current assets Liabilities (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) Current assets Current iiabilities (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) Total liabilities and equity Total assets 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 2 x Current ratio Total debt./ assets