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 $250,000 210,400 $ 39,600 2,100 $ 37,500 10,000 $ 27,500 $ 11,000 Balance Sheet Assets Liabilities and Shareholders' Equity Cash Accounts receivable $3,000 Accounts payable $6,100 11,000 Accrued wages 1,300 Inventory Current assets Capital assets $30,000 71,000 Notes payable 16,000 Accrued taxes Current liabilities Long-term debt Common stock 2,600 $10,000 7,100 Total assets 15,500 21,000 Retained earnings 47,400 $101,000 Total liabilities and equity $101,000 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.) 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 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) es $ Current liabilities $ (Click to select) (Click to select) es (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