I am doing this right? Purple Pillows, Inc is using the percent-of-sales method to calculate External Financing Needed (EFN) over the next two years. Assume the following:

* They are at 100% asset capacity

* Depreciation, and interest grow in proportion with sales

* The tax rate remains constant over the three years

* Long-term notes are the plug variable

Use the attached template to:

1) Fill in all the blank yellow cells with the appropriate functions

2) Balance the balance sheet using LT notes as the plug

3) Ensure that your spreadsheet is fully dynamic by changing the yellow-highlighted growth, tax, and dividend rates

4) Use your sheet to calculate EFN for the three scenarios listed on the "Questions" tab

Income Statement 10% 26% 35% Growth Rate Tax Rate Dividend Rate Purple Pillows, Inc 2018 2019 Sales COGS SG&A 2017 $ 1,000,000 $ (350,000) (400,000) Operating Income 250,000 $ Depreciation EBIT Interest paid $(50,000) $200,000 $ $(75,000) Taxable income 125,000 $ $ (32,500) S 92,500 Taxes Net Income $32,375 $ 60,125 Dividend Add to RE