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The Longbranch Western Wear Company has the following financial statements, which are representative of the company's historicat average. Longbranch is expecting a 30 percent increase
The Longbranch Western Wear Company has the following financial statements, which are representative of the company's historicat average. 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 wili be done through more efficlent asset utilization in the existing stores. Of liabilities, only current liablities vary dicectly with sales. a. Using a percent-of-sales method, determine whether Longbranch Westem Wear has external financing needs. (input the amount as a positive value.)
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