Start with the partial model in the file Ch$12$ P$10$ Build a Model.xls x on the textbook's Web site, which contains the After completing the preliminary forecast of the balance sheets and income statement, go to the area below the

preliminary forecast and identify the financing deficit or surplus. Then use Excel's IF statements to specify the

amount of any new line of credit OR special dividend $($you should not have a new line of credit AND a special

dividend, only one or the other$).$

After specifying the amounts of the special dividend or line of credit, create a second column $($I$)$ for the final

forecast next to the column for the preliminary forecast $(H).$ In this final forecast, be sure to include the effect of the

special dividend or line of credit.

$2023$ financial statements of Zieber Corporation. Forecast Zeiber's $2024$ income statement and balance sheets.

Use the following assumptions: $(1)$ Sales grow by $6\%.(2)$ The ratios of expenses to sales, depreciation to fixed

assets, cash to sales, accounts receivable to sales, and inventories to sales will be the same in $2024$ as in $2023.(3)$

Zeiber will not issue any new stock or new long$-$term bonds. $(4)$ The interest rate is $11\%$ for long$-$term debt and the

interest expense on long$-$term debt is based on the average balance during the year. $(5)$ No interest is earned on

cash. $(6)$ Regular dividends grow at an $8\%$ rate. $(7)$ The tax rate is $25\%.$ Calculate the additional funds needed $($AFN$).$

If new financing is required, assume it 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 will be made on the last day of the year, so there will be no additional

interest expense for the new line of credit. If surplus funds are available, pay a special dividend.

a$.$ What are the forecasted levels of the line of credit and special dividends? $($Hints: Create a column showing the

ratios for the current year; then create a new column showing the ratios used in the forecast. Also, create a

preliminary forecast that doesn't include any new line of credit or special dividends. Identify the financing deficit or

surplus in this preliminary forecast and then add a new column that shows the final forecast that includes any new

line of credit or special dividend.$)$

Begin by calculating the appropriate historical ratios in Column E$.$ Then put these ratios and any other input ratios in

Column G$.$

Forecast the preliminary balance sheets and income statements in Column H$.$ Don't include any line of credit or

special dividend in the preliminary forecast.