Please include Excel calculations if you're able!

File Home Insert Page Layout Formulas Data Review View Help K4 fie A B D E F G H 2 3 Start with the partial model in the file Ch12 P10 Build a Model.xls x on the textbook's Web site, which contains the 4 2016 financial statements of Zieber Corporation. Forecast Zeiber's 2017 income statement and balance sheets. Use the 5 following assumptions: (1) Sales grow by 6%. (2) The ratios of expenses to sales, depreciation to fixed assets, cash 6 to sales, accounts receivable to sales, and inventories to sales will be the same in 2017 as in 2016. (3) Zeiber will not 7 issue any new stock or new long-term bonds. (4) The interest rate is 11% for long-term debt and the interest expense 8 on long-term debt is based on the average balance during the year. (5) No interest is earned on cash. (6) Regular 9 dividends grow at an 8% rate. (6) Calculate the additional funds needed (AFN). If new financing is required, assume it 10 will be raised by drawing on a line of credit with an interest rate of 12%. Assume that any draw on the line of credit 11 will be made on the last day of the year, so there will no additional interest expense for the new line of credit. If 12 surplus funds are available, pay a special dividend. 13 14 Key Input Data: Used in the 15 forecast 16 Tax rate 40% 17 Dividend growth rate 8% 18 Rate on notes payable-term debt, rstd 9% 19 Rate on long-term debt, ra 11% 20 Rate on line of credit, roc 12% 21 22 a. What are the forecasted levels of the line of credit and special dividends? (Hints: Create a column showing the 23 ratios for the current year; then create a new column showing the ratios used in the forecast. Also, create a 24 preliminary forecast that doesn't include any new line of credit or special dividends. Identify the financing deficit or 25 surplus in this preliminary forecast and then add a new column that shows the final forecast that includes any new 26 line of credit or special dividend.) 27 28 Begin by calculating the appropriate historical ratios in Column E. Then put these ratios and any other input ratios in 29 Column G. 30 31 Forecast the preliminary balance sheets and income statements in Column H. Don't include any line of credit or 32 special dividend in the preliminary forecast. 33 34 After completing the preliminary forecast of the balance sheets and income statement, go to the area below the 35 preliminary forecast and identify the financing deficit or surplus. Then use Excel's IF statements to specify the amount 36 of any new line of credit OR special dividend (you should not have a new line of credit AND a special dividend, only 37 one or the other). File Home Insert Page Layout Formulas Data Review View Help K4 X - A B D E F G H J K 73 74 Liabilities and equity 75 Accounts payable $31,861 % of sales 76 Accruals $27,309 % of sales 77 Line of credit $0 Zero in preliminary forecast 78 Total current liabilities $59,170 79 Long-term debt $120,000 Previous 80 Total liabilities $179,170 81 Common stock $60,000 Previous 82 Retained Earnings $106,745 Previous + Addition to retained earnings 83 Total common equity $166,745 84 Total liabilities and equity $345,914 85 86 Identify Financing Deficit or Surplus 87 88 Increase in spontaneous liabilities (accounts payable and accruals) 89 + Increase in long-term bonds, preferred stock and common stock 90 + Net income (in preliminary forecast) minus regular common dividends 91 Increase in financing 92 93 Increase in total assets 94 Amount of financing deficit or surplus: 95 96 If deficit in financing (negative), show the amount for the line of credit 97 If surplus in financing (positive), show the amount of the special dividend 98 99 a. What are the forecasted levels of the line of credit and special dividends? 100 101 Required ine of credit Note: we copied values from H99:H100 when sales growth in G51 = 6%. 102 Special dividends 103 104 b. Now assume that the growth in sales is only 3% (do this by changing the growth rate in Cell G51). What are the 105 forecasted levels of line of credit and special dividends? 106 107 Required ine of credit Note: we copied values from H99:H100 when sales growth in G51 = 3%. 108 Special dividends