The assignment required to analyze the financial statements of a company preferably which is growing and is not a financial institution. The chosen company is Procter and Gamble. The data under analysis is from years 2006 to 2002.the consolidated balance sheet and the statement of earnings is given in appendix for year 2006.
Sales growth for this is forecasted to be 14.109% using the geometric mean method. Since the increase in Assets was not large enough therefore no extra funding was required and hence no new debt was raised or no new stocks will be issued. All the funding required will be done through retained earnings the company has from previous years. Most of the ratios are estimated to improve next year in the favor of company showing that the organizaiton’s performance is expected to improve next year.