The Longbranch Western Wear Company has the following financial statements, which are average. Income Statement Sales Expenses Earnings before interest and taxes Interest Earnings before taxes Taxes Earnings after taxes Dividends $200,000 164,300 $ 35,700 3,700 $ 32,000 10,000 $ 22,000 $11,000 Balance Sheet Assets Liabilities and Shareholders' Equity Cash $3,000 Accounts payable $15,700 5 Accounts receivable 27,000 Accrued wages 2,900 Inventory 32,000 Accrued taxes 15,400 Current assets $62,000 Capital assets 87,000 Notes payable Current liabilities Long-term debt Common stock Retained earnings $34,000 Total assets $149,000 Total liabilities and equity 8,700 23,500 37,000 45,800 $149,000 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. 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 has $ 28100 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.) Balance Sheet