I need help with the yellow hightlighted area. I can't figure out how to calculate this section properly.

Chapter: Problem: 12 10 Start with the partial model in the file Ch12 P10 Build a Model.xls on the textbook's Web site, which contains the 2013 financial a. What are the forecasted levels of notes payable and special dividends? Key Input Data: Used in the forecast Tax rate 0.4 Dividend growth rate 0.08 Rate on notes payable-term debt, 0.09 Rate on long-term debt, rd 0.11 Rate on line of credit, rLOC 0.12 December 31 Income Statements: (in thousands of dollars) Forecasting 2013 basis Sales 455150 Growth Expenses (excluding depr. & amor386877.5 % of sales Depreciation and Amortization 14564.8 % of fixed assets EBIT 53707.7 Interest expense on long-term de 11880 Interest rate x average debt during year Interest expense on line of credit 0 EBT 41827.7 Taxes (40%) 16731.08 Net Income 25096.62 Common dividends (regular divid 12554 Growth Special dividends Addition to retained earnings (D 12542.62 December 31 Balance Sheets (in thousands of dollars) Forecastin 2013 2014 2013 basis Ratios Forecast Assets: Cash Accounts Receivable Inventories Total current assets Fixed assets Total assets 18206 % of sales 100133 % of sales 45515 % of sales 163854 182060 % of sales 345914 Liabilities and equity Accounts payable 31860.5 % of sales Accruals Line of credit Total current liabilitie Long-term debt Total liabilities Common stock Retained Earnings Total common equity Total liabilities and eq 27309 % of sales 0 Previous 59169.5 120000 Previous 179169.5 60000 Previous 106744.5 Previous + DRE 166744.5 345914 December 31 Balance Sheets (in thousands of dollars) Forecasting 2013 basis Assets: Cash Accounts Receivable Inventories Total current assets Fixed assets Total assets Liabilities and equity Accounts payable Accruals Line of credit Total current liabilitie Long-term debt Total liabilities Common stock Retained Earnings Total common equity Total liabilities and eq 18206 % of sales 100133 % of sales 45515 % of sales 163854 182060 % of sales 345914 31860.5 % of sales 27309 % of sales 0 Previous 59169.5 120000 Previous 179169.5 60000 Previous 106744.5 Previous + DRE 166744.5 345914 With Adj. h contains the 2013 financial statements of Zieber Corporation. Forecast Zeiber's 2014 income statement and balance sheets. Use the foll d balance sheets. Use the following assumptions: (1) Sales grow by 6%. (2) The ratios of expenses to sales, depreciation to fixed assets, ca epreciation to fixed assets, cash to sales, accounts receivable to sales, and inventories to sales will be the same in 2014 as in 2013. (3) Ze me in 2014 as in 2013. (3) Zeiber will not issue any new stock or new long-term bonds. (4) The interest rate is 11% for long-term debt and th 11% for long-term debt and the interest expense on long-term debt is based on the average balance during the year . (5) No interest is earn he year . (5) No interest is earned on cash. (6) Dividends grow at an 8% rate. (6) Calculate the additional funds needed (AFN). If new financ s needed (AFN). If new financing is required, assume it will be raised by drawing on a line of credit with an interest rate of 12%. Assume tha rest rate of 12%. Assume that any draw on the line of credit will be made on the last day of the year, so there will be no additional interest e will be no additional interest expense for the new line of credit. If surplus funds are available, pay a special dividend