Chapter 3 Problem 13 13. Below are the 2014 financial statements for Aquatic Supplies Co. Also appearing are management's forecasts for how individual financial statement items will vary in the future. The company expects sales to grow 12% next year. Aquatic Supplies finances all of its needs with 10-year long-term debt at 10% interest, while excess cash at the end of the year is added to the cash balance. a. Prepare a spreadsheet to estimate Aquatic Supplies 's 2015 need for external funding assuming long-term debt and interest expense remain at their 2011 levels. b. Modify your spreadsheet forecast in part (a) to capture the interdependence between the loan and interest expense. That is, switch your spreadsheet to "manual calculation and include the necessary loan and added interest expense in your forecast. c. Is the required loan in part (b) equal to the required loan you calculated in part (a)? Why are they different? d. Perform a sensitivity analysis of Aquatic Supplies Co s external financing needs as determined in part b). Assume sales grow at 17%!nstead of 12%. How mich does the bank loan increase as sales go from 12% to 17%? of sales to 3%, and accounts receivable fall from 13% of sales o 10%. What happens to the loan need in his scenar o relative to your answerin part b)? interest and any excess cash will add to the company's cash balance. What are your projected values for long-term debt and cash and equivalents in 201 92 administrative expenses are 50% of sales. What are your projected values for long-term debt and cash balance in 2019? c. Perform a scenano ana ysis on the company's projection as determined in part b). Assume sales grow 20%, the cost of goods sold is 38% of sales inventory falls om 590 g. Per orm a scenano analysis on your 5 year pro ction in part f) Assume growth in sales is 10% the cost of goods sold is 41% ofsales, and selling, general and