Please answer all three parts of this question/problem in excel, will thumbs up if so.

Starfresh Restaurant, Inc Projected Financial Statement and Additional Funds Needed Starfresh Restaurant Inc. wishes to analyze expected performance after struggling (like everyone else) during the Covid-19 pandemic. It has assembled its financial statements (income statement and balance sheet, below) for what it calls the grim 2021. After its crucial end-of-quarter meeting, the finance team has also settled on financial and operating projections for use in preparing financial plans for the year 2022:

1) Starfresh has estimated that its sales for 2022 will be $900,000 2) The firm expects to pay $35,000 in cash dividends in 2022 3) Minimum cash balance will be maintained at $30,000 4) Accounts receivable represents approximately 18% of sales 5) Inventory in 2022 will change directly with change in sales 6) A new machine costing $42,000 will be purchased in 2022 and the total depreciation for 2022 will be $17,000 7) Accounts payable will change directly in response to changes in 2022 sales 8) Taxes payable will equal one quarter of the tax liability from the 2022 income statement 9) Marketable securities, other current liabilities, Long-term debt and common stock will remain unchanged

Questions: a) Prepare the forecasted financial statements for the year ended December 31, 2022, assuming that all operating ratios from 2021 will remain at the same level (this is the percentage-of sales approach). Use the AFN formula to cross check.

b) Prepare the forecasted financial statements for the year ended December 31, 2022 using the decisions made by the finance team (the Judgmental approach).

c) Suppose that the company wishes to maintain its capital structure (i.e. keep it the same as in 2021), determine the source of the Additional Funds Needed and balance you forecasted balance sheet. Note: use the AFN obtained from the judgmental approach in part b).

Starfresh Restaurants Income Statement For the Year Ended December 31, 2021 Sales COGS Gross Profits Less: Operating Expense Net Profits before taxes Less: Taxes (.4 * 100,000) Net Profit after taxes Less: Cash Dividends To retained earnings $800,000 600,000 $200,000 100,000 $100,000 40,000 $60,000 20,000 $40,000 Starfresh Restaurants Balance Sheet December 31, 2021 Assets Cash $30,000 Marketable Securities 18,000 Accounts Recievable 152,000 Inventories 100,000 Total Current Assets $300,000 Net Fixed Assets 350,000 Total Assets $650,000 Liabilities and Stockholder's Equity Accounts Payable Taxes Payable Other Current Liabilities Total Current Liabilities Long Term Debt Stockholder's Equity Common Stock Retained Earnings Total Liability & Stockholder's Equity $80,000 20,000 5,000 $105,000 220,000 150,000 175,000 $650,000