Use iteration calculations in Excel to eliminate DFN in the pro forma balance sheet if DFN is not equal to 0. If DFN is a deficit, 50% of the deficit amount will be raised using short-term debt and the other 50% will be raised using long-term debt. If DFN is a surplus, 50% of the surplus will be used to reduce the outstanding short-term debt and the other 50% will be used to reduce the outstanding long-term debt. Set a dummy variable (0, 1) in Excel to control (disable/enable) the iterative calculations.

If there isdeficit, how would you do the above (short term debt for the company is 0 over the past 8 years).