Please help fill out the entire excel balance sheet. All needed info is on the blue SouthWest airlines Balance sheet.

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HOMEWORK PROBLEM DUE 9.24.2019 REQUIRED You are to calculate the amount of external financing Southwest will need if they plan to grow 2018 sales by 10% in 2019. THE NEEDED SOUTHWEST FINANCIALS ARE POSTED ON CANVAS Growth Assumption 10.0% Return on Equity Net Income $ 2,465.0 Shareholders' Equity S 9,853.0 ROE 25.0% Payout/Plowback Dividends $ 348.0 Net Income $ 2.465.0 Payout Plowback 14.1% 85.9% Sustainable Growth Rate ROE 25.0% Plowback 85.9% 21.5% 7 Increase in Earnings 2018 2019P 9 Revenues Net Income 2.465.0 3 Plowback % 0.0% 5 Increase to Retained Earnings S . 17 Assets 2018 0% 9 2019 Increase - 2019 Projected Assets -2 Non Debt Llabilities 3 Accounts payable 4 Accrued laibilities 5 Air traffic liability current and non-current 6 Deferred income taxes 7 Construction obligations 8 Other non-current 9 Total Non-Debt Liabilities o 2019 Increase 10% Projected 2019 Liabilities 4 Debt as of 2018 5 Shareholders' equity end of 2018 6 Retained earnings plowback 2019 projected 8 External Debt needed to fund growth or (excess cash) Item 8. Financial Statements and Supplementary Data Southwest Airlines Co. Consolidated Balance Sheet in millions, except share data) December 31, 2018 December 31, 2017 As Recast ASSETS Current assets: $ Cash and cash cquivalents Short-term investments Accounts and other receivables Inventories of parts and supplies, al cost Prepaid expenses and other current assets Total current assets 1,854 1.835 568 461 310 5,028 1.495 1,778 662 420 460 4.815 Property and cquipment, at cost: Flight equipment Ground property and cquipment Deposits on flight equipment purchase contracts Assets constructed for others 21,753 4,960 775 1.768 29,256 9,731 19,525 970 720 26,243 21,368 4,399 919 1,543 28,229 9,690 18,539 970 786 Less allowance for depreciation and amortization Goodwill Other assets S $ 25.110 S $ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued liabilities Air traffic liability Current maturities of long-term debt Total current liabilities 1,416 1,749 4,134 606 7,905 1,320 1.700 3,495 348 6,863 2,771 936 2,427 1,701 3,320 1,070 2,119 1.390 707 650 Long-term debt less current maturities Air traftic liability - noncurrent Deferred income taxes Construction obligation Other noncurrent liabilities Stockholders' equity: Common stock, S1.00 par value: 2,000,000,000 shares authorized; 807,61 1,634 shares issued in 2018 and 2017 Capital in excess of par value Retained earnings Accumulated other comprehensive income Treasury stock, at cost: 255,008,275 and 219,060,856 shares in 2018 and 2017 respectively Total stockholders' equity 808 1,510 15,967 ROS 1,451 13,832 (8,452) 9,853 26,243 (6.462) 9.641 25,110 S $ See accompanying notes. Southwest Airlines Co. Consolidated Statement of Income in millions, excepl per share amounts) 2018 Year ended December 31, 2017 As Recast 2016 As Recast OPERATING REVENUES: $ 19,763 $ 173 Passenger Freight Other Total operating revenues 20.455 175 1,335 21,965 19,068 171 1.050 20,289 1,210 21,146 OPERATING EXPENSES: Salaries, wages, and benefits Fuel and oil Maintenance materials and repairs Landing fees and airport rentals Depreciation and amortization Other operating expenses Total operating expenses 7.649 4.616 1,107 1.334 1,201 6,786 3,801 1,045 7.305 4,076 1,001 1,292 1,218 2,847 17,739 1.211 2.852 18,759 1,221 2.703 16,767 OPERATING INCOME 3.206 3,407 3,522 131 (38) OTHER EXPENSES (INCOME): Interest expense Capitalized interest Interest income Other (gains) losses, net Total other expenses (income) (49) (35) 112 (24) 21 18 42 72 INCOME BEFORE INCOME TAXES PROVISION (BENEFIT) FOR INCOME TAXES NET INCOME 3.164 699 .465 3,265 (92) 3,357 3,450 1,267 2,183 S 2 $ $ See accompanying notes. Southwest Airlines Co. Consolidated Statement of Comprehensive Income (in millions) 2018 Year ended December 31, 2017 As Recast S 2016 As Recast 2,183 2,465 (26) NET INCOME Unrcalized gain (loss) on fucl derivative instruments, nct of deferred taxes of ($7), $185, and $432 Unrealized gain on interest rate derivative instruments, net of deferred taxes of S1, $4, and $5 Unrealized gain (loss) on defined benefit plan items, net of deferred taxes of S15, S2, and (S13) Other, nct of deferred taxes of ($2), S5, and $5 OTHER COMPREHENSIVE INCOME COMPREHENSIVE INCOME (23) 26 S 2.491S 335 $ 3,692 $ 728 2.911 S Sec accompanying notes. Southwest Airlines Co. Consolidated Statement of Stockholders' Equity in millions, excepl per share amounts) Common Year ended December 31, 2018, 2017, and 2016 Aceumulated Capital in other excess of ex Retained comprehensive par value earnings income (loss) 1,374 S 9,409 $ (1.051) Treasury Common Stock 808 stock Total S $ (3,182) $ 7,358 Balance at December 31, 2015 as reported) Cumulative effect of new accounting standards (see Note (596) 8,813 $ 808 S 1 ,374 S S (1.051) $ $ (3,182) (1,750) (596) 6,762 (1.750) Balance at December 31, 2015 as recast) Repurchase of common stock Issuance of common and treasury stock pursuant to Employee stock plans Conversion of 5.25% senior notes to common stock 12 20 (5) - IT 43 33 (235) 2,911 7,784 (1,600) (235) 2,183 10,761 - 728 $ S S S $ $ 808 - 1,410 - (323) - (4,872) (1.600) Share-based compensation Cash dividends, S. 3750 per share Comprehensive income Balance at December 31, 2016 as recast Repurchase of common stock Issuance of common and treasury stock pursuant to Employee stock plans Share-based compensation Cash dividends, S. 4750 per share Comprehensive income Balance at December 31, 2017 as recast Cumulative effect of new accounting standards (see Note - 37 - - (286) 3.357 13,832S 335 12 - (6,462) (286) 3,692 9,641 $ 808 S 1,451 S $ $ 18 (18) II | (2.000) (2,000) 13 1023 Repurchase of common stock Issuance of common and treasury stock pursuant to Employee stock plans Share-based compensation Cash dividends, S.6050 per share Comprehensive income Balance at December 31, 2018 46 46 - - (348) 2,465 15,967 26 (348) 2,491 9,853 $ 808 S 1,510 S $ 20 $ (8,452) $ See accompanying notes. 10