Longbranch is expecting a 20 percent increase in sales next year, and management is concerned about...

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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. Income Statement Sales $250,000 Expenses 210,900 Earnings before interest and taxes $ 39, 800 Interest 3,800 $ 36,000 11,000 $ 25,000 $ 11,250 Earnings before taxes Taxes Earnings after taxes Dividends Balance Sheet Assets Liabilities and Shareholders' Equity Accounts payable Cash $4,000 $15,800 Accounts receivable Inventory 28,000 Accrued wages 3,000 33,000 $65,000 88,000 Accrued taxes Current liabilities Notes payable Long-term debt Common stock 16,200 $35,000 8,800 24,000 38,000 47, 200 Current assets Capital assets Retained earnings Total liabilities and Total assets $153,000 equity $153,000 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 Current a3sets Liabilities Current assets Current liabilities Total liabilities and equity Total assets LL LLL LLL LL 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. Income Statement Sales $250,000 Expenses 210,900 Earnings before interest and taxes $ 39, 800 Interest 3,800 $ 36,000 11,000 $ 25,000 $ 11,250 Earnings before taxes Taxes Earnings after taxes Dividends Balance Sheet Assets Liabilities and Shareholders' Equity Accounts payable Cash $4,000 $15,800 Accounts receivable Inventory 28,000 Accrued wages 3,000 33,000 $65,000 88,000 Accrued taxes Current liabilities Notes payable Long-term debt Common stock 16,200 $35,000 8,800 24,000 38,000 47, 200 Current assets Capital assets Retained earnings Total liabilities and Total assets $153,000 equity $153,000 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 Current a3sets Liabilities Current assets Current liabilities Total liabilities and equity Total assets LL LLL LLL LL