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Forecast the June 30, 2014, income statement and balance sheet for Procter & Gamble. Use the percent of sales method and the following assumptions 1)

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 stockholdres. Use your judgement on all other items.

PROCTER & GAMBLE CO (PG)
Income Statement
For the Fiscal Years Ending June 2009 to 2013
2014* 2013 2012 2011 2010 2009
Revenue 85,000 84,167 83,680 82,559 78,938 79,029
Cost of revenue 42,428 42,391 40,768 37,919 38,898
Gross profit 41,739 41,289 41,791 41,019 40,131
Sales, General and administrative 26,950 26,421 25,973 24,998 24,008
Other operating expenses 308 1,576 - - -
Operating income 14,481 13,292 15,818 16,021 16,123
Interest Expense 667 769 831 946 1,358
Other income (expense) 1,029 262 202 (28) 560
Income before taxes 14,843 12,785 15,189 15,047 15,325
Provision for income taxes 3,441 3,468 3,392 4,101 4,032
Net income from continuing operations 11,402 9,317 11,797 10,946 11,293
Net income from discontinuing ops - 1,587 - 1,790 2,143
Other (90) (148) - - -
Net income 11,312 10,756 11,797 12,736 13,436
*Forecast
Preferred dividend - - 233 219 192
Net income available to common shareholders 11,312 10,756 11,564 12,517 13,244
Common dividends 6,519 6,139 5,767 5,458 5,044
Earnings per share:
Basic 4.04 3.82 4.12 4.32 4.49
Diluted 3.86 3.66 3.93 4.11 4.26
Weighted average shares outstanding:
Basic 2,743 2,751 2,804 2,901 2,952
Diluted 2,931 2,941 3,002 3,099 3,154
EBITDA 18,492 16,758 18,858 19,101 19,765
Source: Morningstar Direct (retrieved 24 February 2014)
Fiscal year ends in June. USD in millions except per share data.

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.

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