Adjust the Cash Balance We obtain the following 2020 forecasts of selected financial statement line items for Journey Company. $ millions 2019 Actual 2020 Est. Net Sales $581,014 $607,160 Marketable securities 55,019 50,919 Long-term debt 284,178 252,918 Treasury stock (deducted from equity) 41,963 41,963 Cash generated by operations 47,311 Cash used for investing (12,225) Cash used for financing (44,821) Total net change in cash (9,735) Cash at beginning of period 41,936 Cash at end of period $32,201 Note: Complete the entire question in Excel using the following template: Excel Template. Format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places. a. Does forecasted cash deviate from the normal level for this company? Calculate the company's normal cash level as a percentage of sales. Normal cash as a % of sales Answer 7 Using the answer above, compute what should be the normal cash balance for FY2020. Normal cash balance for FY2020 Answer 43,715 b. Is the deviation in part a large enough to require adjustment? Explain. Answer Yes. The deviation is large enough to require an adjustment. c. Identify three ways to adjust the forecasted cash balance. Which option would least likely be used to adjust the cash balance? Answer Decrease capital expenditures d. Complete the following statement of cash flows assuming long-term debt is used to adjust the forecasted cash balance. Statement of Cash Flows Cash generated by operations Answer 47,311 Cash used for investing Answer (12,225) Cash used for financing Answer (35,086) Total change in cash Answer 0 Cash at beginning of period Answer 41,936 Cash at end of period Answer 425,012 e. Complete the following statement of cash flows assuming marketable securities are used to adjust the forecasted cash balance. Statement of Cash Flows Cash generated by operations Answer 47,311 Cash used for investing Answer 0 Cash used for financing Answer (44,821) Total change in cash Answer 0 Cash at beginning of period Answer 41,936 Cash at end of period Answer 0