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Please answer questions 2-5 1) Construct the company's current balance sheet 2) Calculate the financial ratios listed below. a) Use the Name Manager to point
Please answer questions 2-5
1) Construct the company's current balance sheet 2) Calculate the financial ratios listed below. a) Use the Name Manager to point the named cell Nettincome (Currently pointing to sales revenue) to the net income amount for the current year provided in Collumn D. Use the name to reference this cell in any equations (NOTE: do not name cells unless instructeet). b) Name the corresponding financial ratios in Collumn D with the following names: TAT, PM, DE, ROA, ROE and SGR. Use the names to reference these cells in any equations c) Use the DuPont Identity to calcul late ROA and ROE. 3) Construct a pro forma income statement using the company's sustainable growth rate as the projected growth in sales. Use the Max function to prevent negative taxes. 4) Construct a pro forma balance sheet based on the company's sustainable growth rate (sheet will not balance since only costs, current liabilities, and assets are assumed to grow proportional to sales). 5) Use the pro forma balance sheet to calculate the external financing needs. a) Bassed on the assumptions of the SGR, what is the total growth in assets and the external financing needed? b) What is the internal equity financing and spontaneous (AP) financing? NNOTE: EFN plus the internalsppontanoues financing in this step should sum to the growth in assets. c) Based on the assumptions of the SGR, what is the external debt financingStep by Step Solution
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