The balance sheet of Teal Ltd$.$ appears below:

Teal Ltd$.$

Balance Sheet

December $31,2023$

$$$million

Cash $10$

Accounts Receivables $20$

Inventory $30$

Net Fixed Assets $120$

Total Assets $180$

Accruals $10$

Accounts Payable $10$

Short term debt $20$

Long term debt $40$

Equity $100$

Total liabilities & Equity $180$

In $2023,$ Teal Ltd$.$ had total sales of $$200$ million. The company$$s net profit for $2023$ was $$30$ million and $$18$ million was paid out as dividends. The company is currently operating below full capacity and is considering a $60\%$ increase in sales during $2024.$

Required:

Advise Teal on the amount of new funding that would be required in order to achieve the $60\%$ increase in sales during $2024.(6$ marks$)$

Assuming that the company is able to raise these funds by way of long term debt, prepare the forecast balance sheet for the year ended December $31,2024.(8$ marks$)$

Advise Teal Ltd$.$ on two alternatives available to the company in the event that they are not able to raise all the funds required by through debt financing $(2$ marks$)$