a$)$ Machinery output refers as one of the primary concerns of production efficiency. The company finds that in such situation with current capital expenditure the maximum amount of allocation for equipment exchange is possible by $40\%$ equipment exchange and rest by modification. It's found that by exchange the overall efficiency increment happens in sales by $13\mathrm{.}5\%$ and by modification it happens by $3\mathrm{.}75\%.$ The associated increase in EBIT is accompanied by changes in Net Income. The increase in NI will be adjusted by increase in Cash$/$Cash equivalents and similarly by the increase in common stock. The increase in FA is accompanied by ST Loans Payable, LT Debts payable and by Notes and Bonds payable for $95\%$ increase in FA$.$ Note that the increase in exchange will be by $11\%$ and by modification will be $2\mathrm{.}5\%.$

$\backslash$table$[[$Income Statement,$455000],[$Sales$,65000],[$COGS$,16500],[$Depr$,373500],[$Operating Income$/$GP$,46000],[$Operating Expense,$327500],[$EBIT$,83000],[$Interest Expense,$244500],[$EBT$,31500],[$Taxes$,213000],[$EAT$,125000],[$Retained Earnings,$88000],[$Net Income,$]]$

A$.$ Suggest the CFFA