Minicase M11.1 Analysis of Cash Flows: Procter & Gamble II Exhabit 11.3 presents the 2010 comparative cash flow suatement for Procter \& Camble (PEG). If you worked the Procter \& Gamble case in the last chapter (Minicase M 10.1), 0% will hove some familiarity with the company. Working that case will set you up to deal wid this installinent quickly, but in any case yoa should have the financial statements in the case (in Exbibit 10.15) hefore you whico soo wook this case. The firm's statutary tax rate is 38 persent. A. Using Method 1. calculate PSGis frec cash flow for 2010. Then calculate the froe cesh flow from the cash flow statement in Exhabit 11.3. making the necessary adjustmetes s correct micclassifications. Do the ruo numbers agrec? Why might thcy differ? B. Using the Mcthod 2 calculation for free cash flow, can you back out the net poyout to hareholders? C. Calculaee the net provout to shareholders from the cash flow statement. Does it agree with your calculation in Pant B of the case? Does it agree with the number froen the sharcholders' equity statement? D. What is the relevance of the supplemental disclosure at the bottom of Procter \& Gamble' cath flow statement? E. Present a reformulased statement of cach flows for the firm. F. State in words the mesage thar this reformulated statement is conveying. EXHIBIT 11.3 Comparative Cash Flew Statemanat for Procter and GamBr for 2010