1.Using the data in the student spreadsheet file Ethan Allen Financials .Xlsx(to find the student spreadsheets for financial Analysis with Microsoft Excel ,eight edition ,go to www,cengagebrain.com )forecast the june30 ,2017 income statement and balance sheet for Ethan Allen. Use the percent of sales methods and the following assumption: 1)sales inFY 2017 will be $979.3359,2)the tax rate will be 35%,3)each item that changes with sales will be the five -year average percentage of sales,4)net fixed assets will increase to $300 ,and 5)the common dividend will be$ 0.75 per share. Use your judgement on all other items.

a. what is the discretionary financing needed in 2017? Is this a surplus or deficit?

b. assume that the DFN will be absorbed by long term debt and that the interest rate is 4% of LTD> set up an iterative worksheet to eliminate it.

c. make a chart of cash versus sales and add a trend line. Is cash a consistent percentage of sales? does this fit your expectations?

d. use the regression tool to verify your results from part c.is the trend statically significant? Use at least three method from the regression output to show why or why not.

2.use the same data as in problem 1

a.recalculate the percentage of sale income statement, but this time use the trend function to forecast other income and interest expense.

b. recalculate the percentage of sales balance sheet, but this time use the trend functions to forecast cash, other long term asset, and other liabilities

c. do these new values appear to be more realistic than the original values? Does this make sense for each of these items? Might other income statement or balance sheet items be forecasted in this way