calculate Debt need or excess cash at different COGS/Sale level. Your current assumption is COGS/Sale =0.38, then you change the assumption for COGS/SALE to be 0.35, 0.4, 0.44... etc, to see how debt or excess cash changes.

PLEASE ALSO EXPLAIN THE FORMULA USED, and EXPLANATION FOR IT

SALES 4227,33,000 SALES 4227, 33,000 0.38 COGS/SALES 0.38 COGS/SALES 0.5 OPERATING EXP, SALES 0.5 OPERATING EXP/SALES 0.06 INTEREST RATE 0.06 INTEREST RATE TAN RATE 0.3 TAN RATE 0.3 DIVIDENDS 109, 00,000.00 DIVIDENDS 10,900 0.32 CURRENTASSETSSALE 0.32 CURRENTASSETS/SALES 0.28 CURRENT LIABILITIES s, 0.28 CURRENT LIABILITIES/SALE 1106,00,000 FIXED ASSETS 1106, 00,000 FIXED ASSETS STARTING EouITY 1216,00,000 STARTING EQUITY 1216,00,000 INCOME STATEMENT INCOME STATEMENT SALES 4227,33,000 SALES 4776, 88,290 13% increase from 2002 co GS 1606, 38,540.00 coGS 1815, 21,550.20 2113 66,500.00 OPERATING EXPENSE OPERATING EXPENSE 2388, 44, 145.00 (11,71,205, 76) (11,71,205.76) INTEREST EXPENSE (INCOM INTEREST EXPENSE(INC 518,99, 165.76 PROFIT BEFORE TAX 584,93, 800.56 PROFIT BEFORE TAX TAK 155, 69, 49, 73 TAN 175, 48, 140.17 363, 29, 416.03 PROFIT AFTER TAX 409, 45,660.39 PROFIT AFTER TAX DIVIDENDS 109,00,000.00 DIVIDENDS 10,900 254, 29, 416.03 RETAINED EARNINGS 409, 34,760.39 RETAINED EARNINGS 2002 BALANCE SHEET 2003 BALANCE SHEET 328, 27, 228.79 EXCESS CASH EXCESS CASH 195, 20,096.03 1352,74, 560.00 CURRENT ASSETS 1528, 60,252.80 CURRENT ASSETS FIXED ASSETS 1106,00, 000.00 1106,00,000.00 FIXED ASSETS TOTALASSETS 2653,94,656. 03 TOTAL ASSETS 2962, 87,481.59