The problems below build on your HW$2,$ where you calculated EFN for Fleury, Inc. Here, you will

perform sensitivity analysis and create the $$worst$$ and the $$best$$ case scenarios in addition to the

$$normal$$ case. Specifically, the $15\%$ sales growth assumption into next year is the $$worst$$ case, the $25\%$

is the $$best$$ case, and the $20\%,$ from the prior homework, is the $$normal$$ case.

$($Hint: To find if external funds are needed $($EFN$)$ with the $15\%$ and $25\%$ growth rates you will need to

create two additional Income Statement and Balance Sheet Pro$-$Forma with these updated projections. Be

mindful of the change in Retained Earnings and how it is incorporated from the Income Statement into

the Balance Sheet.$)$

$1.$ EFN and Internal Growth: Redo the base set$-$up from the prior homework $($from question $1)$

using sales growth rate of $15\%.$

$2.$ Type of external financing:

$$ If external financing is needed $($EFN$)$ according to your projection in the above question,

what TYPE of external financing would you raise? Why?

$$ If EFN is not needed, according to your projection, what can you do with the extra

funds$/$money$?$ List all the possibilities.

Type your written answer in any Excel cell $($below or above your financial statements$).$ For extra

credit $($see that section below$),$ you can complete Step $2$ BS pro$-$formas showing the changes you

suggest in this question.

$3.$ EFN and Internal Growth: Redo the base set$-$up from the prior homework $($from question $1)$

using sales growth rate of $25\%.$

$4.$ Type of external financing:

$$ If external financing is needed $($EFN$)$ according to your projection in the above question,

what TYPE of external financing would you raise? Why?

$$ If EFN is not needed, according to your projection, what can you do with the extra

funds$/$money$?$ List all the possibilities.

Type your written answer in any Excel cell $($below or above your financial statements$).$ For extra

credit $($see that section below$),$ you can complete Step $2$ BS pro$-$formas showing the changes you

suggest in this question.

$5.$ SCF $($attempt$)$: Create Statement of Cash Flows $($SCF$)$ Pro$-$Formas for Q$1$ and Q$3.$

$($This question is graded for attempt: NO points lost if SCF is incorrect, points lost for no

attempt.$)$

Extra Credit $($no points lost if there is no attempt. $+7$ possible $(+1$ for each correct answer below$).$ No

points lost if attempted, but incorrect.$)$

$1.$ Create at least one Step $2$ Balance Sheet $($BS$)$ Pro$-$Forma statements for question $2$ above.

$2.$ Create at least one Step $2$ Balance Sheet $($BS$)$ Pro$-$Forma statements for question $4$ above.

$3.$ Calculating EFN with multiple conditions: Start with the base case $20\%$ sales growth projection

into $2012$ from HW$2$ question $1.$ Also, going into $2012$ expect the following:

$(1)$ the firm will want to have a minimum cash balance of $$30,000$