One would typically think that if I make more effort in Sales and obtain more orders, I could improve my cash holding. Let$$s check if this is true. Let$$s assume Sales will

continue to increase next year. According to the sales growth rate provided in your Excel file for $2006,$ put together Pro forma Financial Statements and find out whether cash position will improve. To answer this question, you will use the Excel file in your group $($screenshot provided$)$ and perform financial planning with the percent of sales approach, by calculating the estimated Income Statement and Balance Sheet items for $2006$ and find out the cash

position estimated for $2006.$

$$ Percent of Sales Approach.

i$.$ A YouTube lecture on Percent of Sales approach is provided for your

reference. Please note that our setting is slightly different where cash

doesn$$t vary directly with Sales, but will be used to balance the Balance

Sheet. $($Hint: You can first leave it empty and continue forecasting the

Balance Sheet. Once you have all the cell$-$calculation set up$,$ use Goal

Seek and set goal to Total Asset $=$ Total Liability and Equity to solve for

Cash.$)$