The Worksheet provided contains three different tabs. Each tab should be viewed as a possible variable for a business to choose.

Writea 700- to 1050 word paper with three separate sections that include the following:

• Debt-Equity: Determine the effects of using debt versus equity to finance a company. Select the preferred method for your proposed business(es), and explain your answer.
• Leverage-Breakeven: Compare and contrast the three tabs on the Breakeven-Leverage Worksheet. Explain how the future year's forecasted financials will be affected in the areas of net income, cash flow, leverage, and breakeven.Explain why the growth stage of a company might be the deciding factor as to which variable is ideal to follow.
• Forecasting: Explain what a Pro Forma statement is and how it is applied in financial forecasting. Discuss the major models of forecasting and how different they are from each other. Describe which model you prefer for financial forecasting, and explain why.

Citea minimum of three references with in-text citations.

One of my biggest questions is what would the Times Interest Earned be? I have gotten a few different answers and I am not sure which numbers to use exactly. Thanks!

Financial Statements for Moserk Company See further instructions below Income Statement for year ending December 31st Year 20XX $119,299 Sales (Revenues) Costs and Expenses: Cost of Goods Sold Operating, selling and admin expenses Interest Costs: Debt Capital leases Total Costs and Expenses 93,438 9,358 555 229 103,580 15,719 Income Before Income Taxes 4,716 Taxes Net Income $11,003 ______________________________________________________________________________ Balance Sheet for year ending December 31st 20XX Assets Current Assets: Cash and cash equivalents Receivables Inventories Prepaid expenses and other Total Current Assets $1,447 976 16,497 432 19,352 Property, Plant and Equipment, net Property under Capital Lease, net Other Assets and Deferred Charges Total Assets 21,469 2,137 2,426 $45,384 Liabilities and Shareholders' Equity Current Liabilities: Total Current Liabilities $14,460 Long-Term Debt Long-Term Obligations Under Capital Leases Deferred Income Taxes and Other Total Long-term Liabilities Total Liabilities Shareholders' Equity Private Common stock ($.10 par value; 2,241 issued and outstanding) Capital in excess of par value Retained earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity 7,191 2,483 809 $10,483 $24,943 $224 585 19,632 20,441 $45,384 Note -- after the ratios have been calculated in this column below, save it to your hard drive, then attach and submit Calculate Moserk Industry Ratios to be calculated (show work) Ratios in this column Average Current Ratio Quick Ratio Gross Profit Margin Net Profit Margin Debt Ratio (Debt to assets) Debt Ratio (Debt to equity) Times Interest Earned ROA ROE 1.34 0.20 22.00% 9.22% 0.55 1.22 15.18 24.24% 53.83% 2.10 0.75 25.00% 10.00% 0.45 1.20 15.00 14.50% 28.75% Company 1st ve, then attach and submit it as a part of the assignment. 19352/14460 = 1.3383 19352-16497/14460 = .19744 119299-93438 = 25861/119299 = .2167 = .22(100) = 22% 11003/119299 = .9922 (100) = 9.22 % 24943/45384 = .54959 = .55 24943/20441 = 1.22 15719/103580 = .15175 (100) = 15.18 11003/45384 = .24244 (100) = 24.24% 11003/20441 = .53828 (100) = 53.83%