a) Briefly explain the meaning of financial forecasting. (2 Marks) b) Briefly describe the various methods of financial forecasting. (8 Marks) c) Study the income statement and balance sheet shown on the next page and answer the following questions. Table 1: Balance Sheet for 2021 Table 2: Income statement for 2021 Supposing that the 2022 sales are projected to increase by 25% over the year 2021 sales and that there is proportional relationship between sales to operating costs, interest expenses, current assets and spontaneous liabilities. The company has been operating at full capacity and planned to maintain the dividend ratio and profit margin position of the previous year. Required i. Using the Percentage of Sales method, compute the additional funds needed (AFN), assuming that the company was operating at full capacity in the year 2021. (8 Marks) Table 1: Balance Sheet for 2021 Table 2: Income statement for 2021 Supposing that the 2022 sales are projected to increase by 25% over the year 2021 sales and that there is proportional relationship between sales to operating costs, interest expenses, current assets and spontaneous liabilities. The company has been operating at full capacity and planned to maintain the dividend ratio and profit margin position of the previous year. Required i. Using the Percentage of Sales method, compute the additional funds needed (AFN), assuming that the company was operating at full capacity in the year 2021. (8 Marks) ii. Using the Formula method, compute the additional funds needed, assuming that the company was operating at full capacity in the year 2021. (4 Marks)