Can you do in excel and show work Please

Lunar Powered Corporation

Income Statement ($ in millions)

2019 2020e

Sales 3000

Cost of Goods -2100

SGA -450

Interest -50 -70

EBT 400

Taxes (35%) -140

Net income 260

Dividends -50 -60

Addn: Ret. earnings 210

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Lunar Powered Corporation

Balance Sheet

2019 2020e 2019 2020e

Cash 20 Accounts payable 160

Accounts receivables 370 Notes payable 200

Inventory 300 Current liabilities 360

Short term Investments 60 Long-term debt 440

Current assets 750 Common stock 300

Net plant & equip. 1250 Retained earnings 900

Total assets 2000 Total liab. & equity 2000

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Use the Lunar Powered Corporation Financial Statements above to answer the following questions and to report the projected 2020 figures:

a. LPC has been growing rapidly during the past few years and has had to continually raise funds. The CFO has asked you to prepare a forecast of additional funds needed for 2020. She has indicated that sales will increase by 40% next year. Assuming a constant percentage of sales, complete the Lunar Powered Corporation 2020 income statement and balance sheet in the columns provided above. Assume that fixed assets are already at 100% capacity and will need to grow 40% too. Also, assume that interest expense will increase to $70 and that dividends will be $60, and that the short term investments account will not change now to allow LPC to maintain future financial flexibility. Finally, assume that additional funds will be provided by increasing long-term debt (or reducing debt if there is excess cash), and not from increasing notes payable or issuing stock. What additional funds will be needed in 2020 in this scenario (how much new long term debt will we need to obtain)? Determine this from the projected financial statements that you have prepared above.

How much new additional funding will be needed?

Can you do in excel and show work Please