Refine Cash Balance and Consider Capital Structure Consider the following actual FY2019 data and a forecast of FY2020 selected balance sheet and income statement numbers. $ millions FY2019 Actual FY2020 Est. Net sales $29,009 $32,102 Total assets 14,592 16,051 Total liabilities 8,755 9,923 Total equity 5,837 6,128 Cash 2,918 4,378 Marketable securities 730 730 Treasury stock (2,189) (2,627) a. Calculate the company's normal cash level as a percentage of sales. Round answer to one decimal place (ex: 0.2345 = 23.5%) Answer 10.1 % b. Determine the amount of adjustment needed to return cash to a normal level. Is an adjustment warranted? If an adjustment is not warranted, enter zero as the amount needed to return cash to a normal level. If the adjustment is a decrease, use a negative sign with your answer. Round answer to the nearest whole number, if applicable. $Answer 113 c. Compute the liabilities-to-equity ratio for both years. Round answers to two decimal places. FY2019 Actual Answer 1.5 FY2020 Est. Answer 1.62 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 companys 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 companys 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. For parts d through h, complete the table below. Do not use any negative signs with your answers. Round liabilities to equity ratios to two decimal places. d. g. Debt and h. Debt and Marketable f. Treasury Marketable Treasury $ millions Securities e. Debt Stock securities stock Total assets Answer 16,051 Answer 14,915 Answer 14,915 Answer 14,592 Answer 15,347 Total liabilities Answer 9,923 Answer 8,787 Answer 9,923 Answer 8,957 Answer 9,219 Total equity Answer 6,128 Correct Mark 1.00 out of 1.00 Answer 6,128 Answer 4,992 Answer 5,958 Answer 6,128 Cash Answer 3,242 Answer 3,242 Answer 3,242 Answer 3,242 Answer 3,242 Marketable securities Answer 1,866 Answer 730 Answer 730 Answer 730 Answer 1,162 Treasury stock Answer 2,627 Answer 2,627 Answer 3,763 Answer 2,767 Answer 2,627 Liabilities to equity ratio Answer 1.62 Answer 1.43 Answer 1.99 Answer 1.5 Answer 1.5