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Using The Data in The Student Spreadsheet File P G XLSX To

The document instructs the user to forecast the June 30, 2014 income statement and balance sheet for Procter & Gamble using sales and other financial data provided in a spreadsheet file. It lists assumptions to use, such as projected sales of $85,000 and a tax rate of 25.24%. It asks the user to calculate discretionary financing needed for 2014, set up an iterative model to eliminate long-term debt, analyze the relationship between cash and sales, and use scenario analysis to project discretionary financing under different sales scenarios.

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156 views

Using The Data in The Student Spreadsheet File P G XLSX To

The document instructs the user to forecast the June 30, 2014 income statement and balance sheet for Procter & Gamble using sales and other financial data provided in a spreadsheet file. It lists assumptions to use, such as projected sales of $85,000 and a tax rate of 25.24%. It asks the user to calculate discretionary financing needed for 2014, set up an iterative model to eliminate long-term debt, analyze the relationship between cash and sales, and use scenario analysis to project discretionary financing under different sales scenarios.

Uploaded by

Let's Talk With Hassan
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Using the data in the student spreadsheet file P G xlsx to

#3497
Using the data in the student spreadsheet file P&G.xlsx (to find the student spreadsheets for
Financial Analysis with Microsoft Excel, seventh edition, go to www.cengagebrain.com) forecast
the June 30, 2014, income statement and balance sheet for Procter & Gamble. Use the percent
of sales method and the following assumptions: (1) Sales in FY 2014 will be $85,000; (2) The
tax rate will be 25.24%; (3) Each item that changes with sales will be the five-year average
percentage of sales; (4) No preferred dividends will be paid; and (5) The common dividend
payout ratio will be 50% of income available to common stockholders. Use your judgment on all
other items.a. What is the discretionary financing needed in 2014? Is this a surplus or deficit?b.
Assume that the DFN will be absorbed by long-term debt and that the total interest rate is
4.38% of LTD. Set up an iterative worksheet to eliminate it.c. Create a chart of cash vs. sales
and add a linear trend line. Is the cash balance a consistent percentage of sales? Does the
relationship fit your expectations?d. Use the regression tool to verify your results from part c. Is
the trend statistically significant? Use at least three methods to show why or why not.e. Turn off
iteration, and use the Scenario Manager to set up three scenarios:1) Best Case — Sales are 5%
higher than expected.2) Base Case — Sales are exactly as expected.3) Worst Case — Sales are
5% less than expected. What is the DFN under each scenario?View Solution:
Using the data in the student spreadsheet file P G xlsx to

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