Using the spreadsheet information presented next, forecast the external funding required, TIE and TBC ratios for R&E Supplies in 2020. Be sure to calculate all forecast values with formulas that are linked to the "Facts and Assumptions" cells (shaded in yellow) to receive credit. Use the "Comments" column to explain how the forecast figures were estimated when cells are shaded in blue. Net sales Growth rate in sales Cost of goods soldet sales Gen., sell., and admin, expenseet sales Long-term debt Current portion long-term debt Interest rate Tax rate Dividend/earnings after tax New investment in PP&E Depreciation (included in COGS) Cash and securities Accounts receivable Inventories Accounts payable R&E SUPPLIES Facts and assumptions ($ thousands) Actual Forecast 2019 2020F $20.613 20% 86% 11% $760 $660 $100 $100 10% 25% 30% $60 $50 18 days sales in cash 60 days collection period 10 times turnover 40 days payables period 2020F Comments (briefly explain your calculations in cells shaded in blue) INCOME STATEMENT 2019 Net sales $20,613 Cost of goods sold $17.727 Gross profit $2,886 Expenses: General, selling, and administrative expenses $2.267 Operating profit $619 Net interest expense $90 Earnings before tax $529 Tax $238 Earnings after tax $291 Must be calculated iteratively based on the forecast EFR, the short-term portion of long-te 25% tax rate BALANCE SHEET Assets Current assets: Cash and securities Accounts receivable Inventories Prepaid expenses Total current assets Net fixed assets Total assets $412 $2,886 $2,267 $18 $20 Rough estimate $5,583 $287 $5,870 Bank loan is calculated below (EFR) Liabilities and Owners' Equity Current liabilities: Bank loan Accounts payable Current portion long-term debt Accrued wages Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and owners' equity $100 $22 Based on an existing payment schedule Rough estimate $50 $3,212 $100 $18 $3,380 $760 $150 $1,580 $5,870 External funding required (EFR) INT Times Interest Earned Times Burden Covered Based on your analysis above, list two positive factors in evaluating the credit quality of the requested bank loan. Briefly explain your reasoning. Based on your analysis above, list two negative factors in evaluating the credit quality of the requested bank loan. Briefly explain your reasoning. R&E Supplies is asking for your advice to reduce its EFR. List two potential actions the firm could take to decrease its reliance on external funding in 2020. Briefly explain your reasoning