Use the “Balance” spreadsheet to show how you would balance…
Use the “Balance” spreadsheet to show how you would balance DHG using the line of credit and marketable securities. First, set up a circuit breaker to help in case you “break” the balancing. Next you will have to input a formula for net interest. The rate on marketable securities is 2%, on the line of credit is 8%, and on long-term debt is 12%. Use average balance for the balance sheet items for calculation of interest. Next, as you solve for the line of credit and marketable securities balances, ensure that the model is set up to update with changes in numbers. Keep in mind that your ending cash from the statement of cash flows needs to equal your ending cash on the balance sheet if everything is set up correctly. What it the balance of your marketable securities and line of credit in 2020?
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