Need help with understanding what formula to use to determine the sensitivity and situational analysis. - see below. Any help is appreciated. Teacher did not give ANY instructions how to do this, so I am flying blind. - the area in highlighted green is what I need to figure out

1. Perform a sensitivity analysis on this projection. How does R&Es projected external financing required change if the ratio of cost of goods sold to net sales declines from 86.0 percent to 84.0 percent?

2. Perform a scenario analysis on this projection. How does R&Es projected external financing required change if a severe recession occurs in 2023? Assume net sales decline 5 percent (growth rate = -5%), cost of goods sold rises to 88 percent of net sales due to price cutting, and current assets increase to 35 percent of net sales as management fails to cut purchases promptly in response to declining sales.

R&E SUPPLIES
Facts and assumptions ($ thousands)
	Actual	Forecast	Forecast	Forecast	Forecast
	2021	2022	2023	2023 Sensitivity Analysis	2023 Scenario Analysis
Net sales	20,613
Growth rate in sales		25%	30%
Cost of goods sold/net sales		86%	84%
Gen., sell., and admin. expense/net sales		12%	11%
Long-term debt	760	660	560
Current portion long-term debt	100	100	100
Interest rate		10%	10%
Tax rate		25%	25%
Dividend/earnings after tax		50%	50%
Current assets/net sales		29%	29%
Net fixed assets		280	270
Current liabilities/net sales		14.5%	14.4%
Owners' equity	1,730	prior year's equity + addtion to retained earnings