d. Adjust marketable securities so the forecasted cash balance is at its normal level. What affect does this have on the forecasted liabilities-to-equity ratio?

e. Adjust long-term debt so the forecasted cash balance is at its normal level. What effect does this have on the forecasted liabilities-to-equity ratio?

f. Adjust treasury stock so the forecasted cash balance is at its normal level. What effect does this have on the forecasted liabilities-to-equity ratio?

g. Adjust both long-term debt and marketable securities so as to adjust the forecasted cash balance. In so doing, make sure we preserve the companys liabilities-to-equity ratio. (Hint: Use Goal Seek under the What-If Analysis in Excel to determine the proportion of long-term debt versus treasury stock needed to ensure the forecasted liabilities-to-equity ratio remains at its historical level.)

h. Adjust both long-term debt and treasury stock so as to adjust the forecasted cash balance. In so doing, make sure we preserve the companys liabilities-to-equity ratio. (Hint: Use Goal Seek under the What-If Analysis in Excel to determine the proportion of long-term debt versus treasury stock needed to ensure the forecasted liabilities-to-equity ratio remains at its historical level.

For parts d through h, complete the table below.

• Do not use any negative signs with your answers.

• Round liabilities to equity ratios to two decimal places.

	d.			g. Debt and	h. Debt and
	Marketable		f. Treasury	Marketable	Treasury
$ millions	Securities	e. Debt	Stock	securities	stock
Total assets	Answer	Answer	Answer	Answer	Answer
Total liabilities	Answer	Answer	Answer	Answer	Answer
Total equity	Answer	Answer	Answer	Answer	Answer
Cash	Answer	Answer	Answer	Answer	Answer
Marketable securities	Answer	Answer	Answer	Answer	Answer
Treasury stock	Answer	Answer	Answer	Answer	Answer
Liabilities to equity ratio	Answer	Answer	Answer	Answer	Answer