Jackson Co. has the following balance sheet as of December 31, 2003.

Assets:

Current Assets $600,000

Fixed Assets: $400,000

Total assets: $1,000,000

Claims:

Accounts payable: $100,000

Accruals: $100,000

Notes Payable: $100,000

ToT Current Liabs: $300,000

Long Term Debt: $300,000

ToT equity: $400,000

TOT claims $1,000,000

In 2003, the company reported sales of $5 million, net income of $100,000, and dividends of $60,000. The company anticipates its sales will increase 20% in 2004 and its dividend payout will remain at 60%. Assume the company is at full capacity, so its assets and spontaneous liabilities will increase proportionately with an increase in sales.

Assume the company uses the AFN formula and all additional funds needed (AFN) will come from issuing new long-term debt. Given its forecast, how much long-term debt will the company have to issue in 2004?

1. please explain(display) and solve step by step on an excel spreadsheet

2. do the new financial statements using the proforming method

3. and display the old and new Current Ratios