LO E11-27. Refine Cash Balance and Consider Capital Structure Consider the following actual FY2017 data and a forecast of FY2018 selected balance sheet and income statement numbers. $ millions FY2017 Actual FY2018 Est. Net sales.. Total assets. Total liabilities Total equity Cash. Marketable securities .. Total liabilities (including long-term debt). Treasury stock $29,009 14,592 8,755 5.837 2,918 730 8,755 (2,189) $32,102 16,051 9,923 6,128 4,378 730 9,923 (2,627) Required a. Calculate the company's normal cash level as a percentage of sales. b. Determine the amount of adjustment needed to return cash to a normal level. Is an adjustment war- ranted? Explain. c. Compute the liabilities-to-equity ratio for the company's current year (FY2017) and using the fore- casted FY2018 numbers. What do we observe? 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 company's 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 company's 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.)