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 $200,000 158,000 $ 42,000 2,000 $40,000 20,000 $ 20,000 $ 10,00 Assets Cash Accounts receivable Inventory Current assets Capital assets Balance Sheet Liabilities and shareholders' Equity $5,000 Accounts payable $5,000 10,000 Accrued wages 1.000 15,000 Accrued taxes 2,000 $30,000 Current liabilities $8,000 70,000 Notes payable 7,000 Long-term debt 15,000 Common stock 20,000 Retained earnings $100.000 Total liabilities and equity $100,000 Total assets 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 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 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. (nput the amount os a positive value.) The firm has 7600 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 0 wherever it is required.) Balance Sheet Liabilities Current assets Cash Accounts receivable Inventory Accounts payable Accrued wages Accrued taxes 5 Current assets Capital assets 70000 5 Current liabilities Notes payable Long-term debt Common stock Retained earning v