I need some help with the attached docs. I need help forecasting the notes payable,Accruals, and interest.

CERAMIC STRUCTURES ENGINEERING, INC. BALANCE SHEETS AT DECEMBER 31, 2010 2011 2012 2013 2014 2,363 4,779 3,450 10,592 5,193 15,785 1,178 5,643 5,213 12,033 6,551 18,584 899 8,467 6,985 16,351 8,235 24,586 470 9,946 8,071 18,487 9,325 27,812 250 11,507 9,020 20,777 10,354 31,131 1,505 1,669 1,000 2,139 4,004 1,000 1,000 566 5,570 6,358 11,928 3,000 12,884 15,884 27,812 4,226 2,500 1,000 818 7,544 5,358 12,902 3,000 15,229 18,229 31,131 243 1,748 2,358 4,106 3,000 8,679 11,679 15,785 299 2,968 2,358 5,326 3,000 10,258 13,258 18,584 1,000 425 2,564 7,358 9,921 3,000 11,775 14,775 24,696 2010 2011 2012 2013 2014 26,470 20,087 6,383 33,856 25,386 8,471 42,709 32,199 10,510 56,196 45,125 11,071 70,245 55,560 14,685 1,324 1,642 1,064 289 4,318 2,065 1,693 1,726 1,342 342 5,103 3,368 2,563 1,815 1,666 487 6,531 3,979 3,372 1,910 1,910 703 7,895 3,176 4,215 2,010 2,121 772 9,118 5,566 1f 1d Forecast 330 1,735 798 937 444 2,924 1,345 1,579 1,170 2,809 1,292 1,517 1,123 2,053 944 1,109 1,223 4,344 1,998 2,346 100.00% 75.89% 24.11% 100.00% 74.98% 25.02% 100.00% 75.39% 24.61% 100.00% 80.30% 19.70% 100.00% 79.09% 20.91% 5.00% 6.20% 4.02% 1.09% 16.31% 7.80% 1.25% 6.55% 46.00% 3.54% 5.00% 5.10% 3.96% 1.01% 15.07% 9.95% 1.31% 8.64% 46.00% 4.66% 6.00% 4.25% 3.90% 1.14% 15.29% 9.32% 2.74% 6.58% 46.00% 3.55% 6.00% 3.40% 3.40% 1.25% 14.05% 5.65% 2.00% 3.65% 46.00% 1.97% 6.00% 2.86% 3.02% 1.10% 12.98% 7.92% 1.74% 6.18% 46.00% 3.34% Average 100.00% 77.13% 22.87% #VALUE! 5.60% 4.36% 3.66% 1.12% 14.74% 8.13% 1.81% 6.32% 46.00% 3.41% 8.93% 18.06% 13.03% 40.01% 19.62% 59.63% 3.48% 16.67% 15.40% 35.54% 19.35% 54.89% 2.10% 19.83% 16.35% 38.28% 19.28% 57.57% 0.84% 17.70% 14.36% 32.90% 16.59% 49.49% 0.36% 16.38% 12.84% 29.58% 14.74% 44.32% 3.14% 17.73% 14.40% 35.26% 17.92% 53.18% 5.69% 4.93% 2.95% 5.01% 7.13% 1.78% 1.78% 1.01% 9.91% 11.31% 21.23% 5.34% 22.93% 28.27% 6.02% 3.56% 1.42% 1.16% 10.74% 7.63% 18.37% 4.27% 21.68% 25.95% 5.75% #VALUE! #VALUE! 0.99% 8.40% 10.41% 18.81% 7.37% 27.05% 34.42% 0.92% 6.60% 8.91% 15.51% 11.33% 32.79% 44.12% 2f 2d 0.88% 8.77% 6.96% 15.73% 8.86% 30.30% 39.16% 2.34% 1.00% 6.00% 17.23% 23.23% 7.02% 27.57% 34.60% 59.63% 3f 3d 54.89% 57.83% 49.49% 44.32% 53.23% 2015 2016 2017 250 14,319 11,630 26,199 14,473 40,672 250 250 2015 2016 2017 Sales Cost of Goods Gross Profit 80,781 62,307 18,474 92,898 71,653 21,245 106,833 82,401 24,432 G and A expenses Fixed operating expenses Depreciation Miscellaneous Total operating expenses EBIT 4,847 2,010 2,957 904 10,717 7,756 5,574 2,010 3,400 1,039 12,024 9,221 6,410 2,010 3,910 1,195 13,525 10,906 ASSETS Cash Accounts receivable Inventory Current assets Net fixed assets Total assets LIABILITIES AND EQUITIES Accounts payable Notes payable Current Portion LTD Accruals Current liabilites Long-term debt Total Liabilities Common stock Retained earnings Equities Total capital 14,319 Cumulative Need for Funds Annual Need for For Funds 4f 4d Interest EBT Taxes Net income Sales Cost of Goods Gross Profit G and A expenses Fixed operating expenses Depreciation Miscellaneous Total operating expenses EBIT Interest EBT Taxes Net income ASSETS Cash Accounts receivable Inventory Current assets Net fixed assets Total assets LIABILITIES AND EQUITIES Accounts payable Notes payable Current Portion LTD Accruals Current liabilites Long-term debt Total Liabilities Common stock Retained earnings Equities 5f 5d Total capital 6f 6d Ceramic Structures Engineering, Inc. Example Case Ceramic Structures has experienced rapid growth over the past several years. Sales are expected to grow at 15% per year for the next three years. Sales growth has been fueled by aggressive pricing as well as increased use of ceramics in high performance engines. Asset growth has been financed by internal funds as well as the increased use of debt. At the end of 2012, the debt was restructured with a new 10% seven-year loan with principal payments of $1 million per year. In addition a $1.5 million working capital line was negotiated in 2011. It was increased to $2.5 million in 2013 and $3.5 million in 2014. Interest is charged at prime + 1%. (For class, we will use 9%.) Cash balances will be kept around $250,000 and the credit line will average $2 million. 1. Prepare pro-forma statements for Ceramic and determine their need for funds for the years 2015-2017. 2. Why is there a need for funds when Ceramic is generating a profit? 3. If expected sales growth fell to 8% per year, what would be Ceramic's need for funds? 4. What would happen to Ceramic's need for funds if accounts receivable increased to 25% of sales? Ceramic Structures Engineering, Inc. would need funds for the years 2015-2017