The company needs you to help estimate its financing needs based on their target growth rate. As you work each step, you must link to cells within the worksheet. Do not type numbers into your equations/answers. Assume all costs, current liabilities, and assets vary in proportion to sales, and the firm maintains a constant plowback ratio. Use the following information to:

Calculate the financial ratios listed below. a) Use the Name Manager to point the named cell NetIncome (currently pointing to sales revenue) to the net income amount for the current year provided in Column D. Use the name to reference this cell in any equations (NOTE: do not name cells unless instructed). b) Name the corresponding financial ratios in Column 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 calculate ROA and ROE.

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.

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).

Use the pro forma balance sheet to calculate the external financing needs. a) Based 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 (A/P) financing? NOTE: EFN plus the internal/spontanoues financing in this step should sum to the growth in assets. c) Based on the assumptions of the SGR, what is the external debt financing? I only need SGR, proforma income statement and balance sheet, External financing needed, Internal equity requirement.

Data Current Year

Sales $ 70,000

Total Costs (COGS & Admin.) 55,000

Cash 3,140

Accounts receivable 4,200

Inventory 6,500

Net plant and equipment 145,000

Accounts payable 2,600

Notes payable 5,700

Long-term debt 28,000

Common stock & Paid-in Capital 5,000

Retained earnings 117,540

Dividends Paid 4,200

Net income 11,850

Tax rate 21%

PLEASE show explanations in Excel and display the Excel formulas since this problem has to be formulated there.