The Longbranch Western Wear Company has the following financial statements, which are representative of the company's...

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The Longbranch Western Wear Company has the following financial statements, which are representative of the company's historical average. Sales Expenses Earnings before interest and taxes Interest Earnings before taxes Taxes Income Statement Earnings after taxes Dividends Cash Accounts receivable Inventory Current assets Capital assets Total assets Assets $55,000 82,000 $250,000 188,300 $ 61,700 3,200 $ 58,500 21,000. $137,000 $ 37,500 $ 11,250 Balance Sheet $6,000 Accounts payable Accrued wages 22,000 27,000 Accrued taxes Liabilities and Shareholders' Equity Current liabilities Notes payable Long-term debt Common stock Retained earnings Total liabilities and equity $11,200 2,400 11,400 $25,000 8,200 21,000 32,000 50,800 $137,000 Longbranch is expecting a 30 percent increase in sales next year, and management is concerned about the company's need for 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.) (Click to select) (Click to select) (Click to select) Current assets Current assets (Click to select) V V V $ $ Balance Sheet (Click to select) (Click to select) (Click to select) Liabilities Current liabilities. (Click to select) (Click to select). (Click to select) (Click to select) V V V V V Y V $ $ Total assets c. Calculate the current ratio and total debt to assets ratio for each year. (Round the final answers to 2 decimal places.) Current ratio: Total debt/ assets Total liabilities and equity Year 1 Year 2 X The Longbranch Western Wear Company has the following financial statements, which are representative of the company's historical average. Sales Expenses Earnings before interest and taxes Interest Earnings before taxes Taxes Income Statement Earnings after taxes Dividends Cash Accounts receivable Inventory Current assets Capital assets Total assets Assets $55,000 82,000 $250,000 188,300 $ 61,700 3,200 $ 58,500 21,000. $137,000 $ 37,500 $ 11,250 Balance Sheet $6,000 Accounts payable Accrued wages 22,000 27,000 Accrued taxes Liabilities and Shareholders' Equity Current liabilities Notes payable Long-term debt Common stock Retained earnings Total liabilities and equity $11,200 2,400 11,400 $25,000 8,200 21,000 32,000 50,800 $137,000 Longbranch is expecting a 30 percent increase in sales next year, and management is concerned about the company's need for 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.) (Click to select) (Click to select) (Click to select) Current assets Current assets (Click to select) V V V $ $ Balance Sheet (Click to select) (Click to select) (Click to select) Liabilities Current liabilities. (Click to select) (Click to select). (Click to select) (Click to select) V V V V V Y V $ $ Total assets c. Calculate the current ratio and total debt to assets ratio for each year. (Round the final answers to 2 decimal places.) Current ratio: Total debt/ assets Total liabilities and equity Year 1 Year 2 X

Answer rating: 100% (QA)

Here are the stepbystep workings to analyze Longbranchs financial needs for a 30 increase in sales 1 ... View the full answer