Ultravision Limited anticipates sales of $260,000 from January through April. Materials will represent 60 percent of sales and because of level production, material purchases will be equal for each month during these four months. Materials are paid for one month after the month purchased. Materials purchased in December of last year were $22,000 (half of $44,000 in sales). Labour costs for each of the four months are slightly different due to a provision in the labour contract in which bonuses are paid in February and April. Fixed overhead is $8,000 monthly. The labour figures are: January $12,000 15,000 February March 12,000 17,000 April Prepare a schedule of cash payments for January through April. Ultravision Limited Cash Payment Schedule December April January $ February $ March 5 Purchases $ 32000 Payment to material purchases Labour Fixed overhead Total cash payments 5 $ 38 Income Statement Sales Expenses $200,000 149,300 $ 50,700 Earnings before interest and taxes Interest 2,700 Earnings before taxes $ 48,000 Taxes 16,000 Earnings after taxes $ 32,000 Dividends $ 16,000 Balance Sheet Assets Liabilities and Shareholders' Equity Cash $9,000 Accounts payable $2,700 Accounts receivable Accrued wages 1,900 Inventory 17,000 22,008 Accrued taxes Current assets Capital assets $48,000 77,000 Current liabilities Notes payable 7,400 $12,000 7,700 Long-term debt 18,500 27,000 Common stock Retained earnings 59,800 Total assets $125,000 Total liabilities and equity $125,000 Longbranch is expecting a 25 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 has $ 11225 in surplus funds