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 seults from part c. Is the trend statistically significant? Use at least three methods to show why or why not. E. Turn off iteration, a nd sue the Scenario Manager to set up three scenarios: !. Best case--Sales are 5% higher tahn 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?

I J K L M N 0 P Q A B C D E F G 1 PROCTER & GAMBLE CO (PG) 2 Income Statement 3 For the Fiscal Years Ending June 2009 to 2013 4 2014 2013 2012 2011 2010 2009 5 Revenue 85,000 84,167 83,680 82,359 78.938 79,029 6 Cost of revenue 42,428 42,391 40.768 37,919 38,898_Average 7 Gross profit 8 Sales, General and administrative 26,950 26,421 25.973 24,998 24.008 Average 9 Other operating expenses 308 1,576 Average 10 Operating income 11 Interest Expense 667 769 831 946 1,358 -Previous 12 Other income (expense) 1,029 262 202 (28) 560 -Previous 13 Income before taxes 14 Provision for income taxes 3,441 3,468 3,392 4,101 4.032 15 Net income from continuing operations 16 Net income from discontinuing ops 1,587 1,790 2,143 Previous 17 Other 1961) (148) 18 Ner income 19 20 Forecast * 21 Preferred dividend 233 219 192 22 Nct income available to common sharcholders 23 Common dividends 24 Tax Ratc Average 25 Payout Ratio 50.00% 26 27 Additional Funds Needed Build formula to put Deficit, Surplus or Balanced depending on number 28 29 30 31 Earnings per shore: 32 Basic 33 Diluted 34 35 Weighted average shares outstanding: 36 Basic 2,743 2,751 2,804 2,901 2,952 37 Diluted 2,931 2,931 2,941 3,002 3,099 3,154 38 39 Fiscal year ends in June. USD in millions except per share data 40 41 42 43 B c D E F G I I J K L M N PROCTER & GAMBLE CO (PG) Balance Sheet For the Years Ended June 2009 to 2013 2014 2013 2012 2011 2010 2009 5,947 1 2 3 4 Assets 5 Current assets 6 Cash and cash equivalents 7 Receivables 8 Inventories 9 Deferred income taxes 10 Prepaid cxpenses 11 Total current and 12 Gross property, plant and equipment 13 Accumulated Depreciation 14 Net property, plant and equipment Goodwill 16 Intangible assets 17 Other long-term assets 18 Total non-current assets 19 Total axes 5,947 6,508 6,909 948 3,678 6,068 6,721 1,001 3,684 2.768 6,275 7.379 1,140 4,408 2.879 5,335 6.384 990 3.194 4.781 5,836 Average 6.880 Average 1,209 Previous 3.199 -Provious 43,012 21,346 40,233 19,856 41,507 20.214 37,012 17.768 36,651 Previous 17.189 - Previous SS,188 31,972 6,847 53,773 30,988 5,196 57,562 32,620 4,909 54,012 31.6.36 4,498 S6.512 Previous 32.6016 Previous 4,348 Previous 9,981 8,022 8,472 7.251 12,432 8,777 817 5,161 2,850 8,698 7,920 414 7.875 16.320 Previous 5.980 Average - Previous 8.601 Average -Previous 9.290 8.559 19,111 10,827 645 10,579 21,080 10,132 596 12,090 22,0.13 11,070 361 9.957 21.360 10,902 324 10.189 20.652 Previous 10,752 Previous - Previous 9.429 -Previous 21 Liabilities and stockholders' equity 22 Current liabilities 23 Short-term debt 24 Accounts payable 25 Taxes payable 26 Accruod liabilities 27 Other current liahilities 28 Yonal currewi liabilities 29 Long term debt 30 Deferred taxes liabilities 31 Minority interest 32 Other long-term liabilities 33 Total liabilnies 34 Preferred stock 35 Common stock 36 Other Equity 37 Additional paid-in capital 38 Retained carnings 39 Treasury stack 40 Accumulated other comprehensive income 41 Yulai stockholders' equity 42 Total Habiliries and sockholders' equity 43 44 Additional Funds Noodod 45 46 47 48 Source: Morningstar Direct (retrieved 24 February 2014) 49 Fiscal year ends in Junc. USD in millions except per share data. 50 51 52 % of Sales IS % of Sales BS 1,137 4,009 (1,352) 63,538 80,197 (71,966) (7,499) 1,195 4,008 (1,357) 53,181 75,349 (69,604) (9,333) 1.2.34 4,008 (1,357) 62,405 70,682 (67.278) (2,054) 1.277 4,008 (1.350) 61,697 64,614 (61,309) (7,822) 1,324 Previous 4,007 Previous (1.340) - Previous 61,118 Previous 57,309 (55.961) - Previous (3358) Previous Build formulatto put Dcficit, Surplus or Balanced depending on number. I J K L M N 0 P Q A B C D E F G 1 PROCTER & GAMBLE CO (PG) 2 Income Statement 3 For the Fiscal Years Ending June 2009 to 2013 4 2014 2013 2012 2011 2010 2009 5 Revenue 85,000 84,167 83,680 82,359 78.938 79,029 6 Cost of revenue 42,428 42,391 40.768 37,919 38,898_Average 7 Gross profit 8 Sales, General and administrative 26,950 26,421 25.973 24,998 24.008 Average 9 Other operating expenses 308 1,576 Average 10 Operating income 11 Interest Expense 667 769 831 946 1,358 -Previous 12 Other income (expense) 1,029 262 202 (28) 560 -Previous 13 Income before taxes 14 Provision for income taxes 3,441 3,468 3,392 4,101 4.032 15 Net income from continuing operations 16 Net income from discontinuing ops 1,587 1,790 2,143 Previous 17 Other 1961) (148) 18 Ner income 19 20 Forecast * 21 Preferred dividend 233 219 192 22 Nct income available to common sharcholders 23 Common dividends 24 Tax Ratc Average 25 Payout Ratio 50.00% 26 27 Additional Funds Needed Build formula to put Deficit, Surplus or Balanced depending on number 28 29 30 31 Earnings per shore: 32 Basic 33 Diluted 34 35 Weighted average shares outstanding: 36 Basic 2,743 2,751 2,804 2,901 2,952 37 Diluted 2,931 2,931 2,941 3,002 3,099 3,154 38 39 Fiscal year ends in June. USD in millions except per share data 40 41 42 43 B c D E F G I I J K L M N PROCTER & GAMBLE CO (PG) Balance Sheet For the Years Ended June 2009 to 2013 2014 2013 2012 2011 2010 2009 5,947 1 2 3 4 Assets 5 Current assets 6 Cash and cash equivalents 7 Receivables 8 Inventories 9 Deferred income taxes 10 Prepaid cxpenses 11 Total current and 12 Gross property, plant and equipment 13 Accumulated Depreciation 14 Net property, plant and equipment Goodwill 16 Intangible assets 17 Other long-term assets 18 Total non-current assets 19 Total axes 5,947 6,508 6,909 948 3,678 6,068 6,721 1,001 3,684 2.768 6,275 7.379 1,140 4,408 2.879 5,335 6.384 990 3.194 4.781 5,836 Average 6.880 Average 1,209 Previous 3.199 -Provious 43,012 21,346 40,233 19,856 41,507 20.214 37,012 17.768 36,651 Previous 17.189 - Previous SS,188 31,972 6,847 53,773 30,988 5,196 57,562 32,620 4,909 54,012 31.6.36 4,498 S6.512 Previous 32.6016 Previous 4,348 Previous 9,981 8,022 8,472 7.251 12,432 8,777 817 5,161 2,850 8,698 7,920 414 7.875 16.320 Previous 5.980 Average - Previous 8.601 Average -Previous 9.290 8.559 19,111 10,827 645 10,579 21,080 10,132 596 12,090 22,0.13 11,070 361 9.957 21.360 10,902 324 10.189 20.652 Previous 10,752 Previous - Previous 9.429 -Previous 21 Liabilities and stockholders' equity 22 Current liabilities 23 Short-term debt 24 Accounts payable 25 Taxes payable 26 Accruod liabilities 27 Other current liahilities 28 Yonal currewi liabilities 29 Long term debt 30 Deferred taxes liabilities 31 Minority interest 32 Other long-term liabilities 33 Total liabilnies 34 Preferred stock 35 Common stock 36 Other Equity 37 Additional paid-in capital 38 Retained carnings 39 Treasury stack 40 Accumulated other comprehensive income 41 Yulai stockholders' equity 42 Total Habiliries and sockholders' equity 43 44 Additional Funds Noodod 45 46 47 48 Source: Morningstar Direct (retrieved 24 February 2014) 49 Fiscal year ends in Junc. USD in millions except per share data. 50 51 52 % of Sales IS % of Sales BS 1,137 4,009 (1,352) 63,538 80,197 (71,966) (7,499) 1,195 4,008 (1,357) 53,181 75,349 (69,604) (9,333) 1.2.34 4,008 (1,357) 62,405 70,682 (67.278) (2,054) 1.277 4,008 (1.350) 61,697 64,614 (61,309) (7,822) 1,324 Previous 4,007 Previous (1.340) - Previous 61,118 Previous 57,309 (55.961) - Previous (3358) Previous Build formulatto put Dcficit, Surplus or Balanced depending on number