The Longbranch Western Wear Company has the following financial statements, which are representative of the company's historical average Income Statement Sales $200,000 Expenses 155, See Earnings before interest and taxes $ 44,5ee Interest 2,500 Earnings before taxes $ 42,000 Taxes 14,000 Earnings after taxes $ 28,000 Dividends $ 11,200 Assets Cash Accounts receivable Inventory Current assets Capital assets Balance Sheet Liabilities and Shareholders' Equity $7,000 Accounts payable $2,500 15,600 Accrued wages 1,700 20,000 Accrued takes 5,800 $42, eee Current liabilities $10, eee 75,000 Notes payable 7. See Long-tere debt 17,500 Common stock 25,000 Retained earnings 57.ee $117,00 Total liabilities and equity $117,00 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, 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 0 wherever it is required.) Balance Sheet Liabilities $ $ Current assets (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) Click to select) Current assets Click to select) $ Current liabilities (Click to select) (Click to select) (Click to select) Click to select) 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 0 wherever it is required.) Balance Sheet Liabilities $ Current assets Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) $ Current assets (Click to select) $ Current liabilities (Click to select) (Click to select) Click to select) (Click to select) v 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 Current ratio Total debt/ assets