Procter & Gamble (P&G) is preparing its financial statements for the fiscal year 2023. The company has recorded the following financial data:

Transactions (in $ millions)	Amount
Cash Sales	1,400
Credit Sales	To be provided by you

Requirements:

1. Income Statement Preparation:
   • Prepare Procter & Gamble's income statement for the fiscal year 2023, including:
     • Revenue from Cash Sales
     • Revenue from Credit Sales
     • Cost of Goods Sold (CGS)
     • Gross Profit
     • Operating Expenses (e.g., Selling, General & Administrative Expenses)
     • Operating Income

1. Balance Sheet Preparation:
   • Prepare Procter & Gamble's balance sheet as of December 31, 2023, including:
     • Current Assets (e.g., Cash, Accounts Receivable)
     • Non-current Assets (e.g., Property, Plant & Equipment)
     • Current Liabilities (e.g., Accounts Payable, Short-term Debt)
     • Non-current Liabilities (e.g., Long-term Debt, Deferred Tax Liabilities)
     • Shareholders' Equity

1. Financial Ratios Calculation:
   • Calculate the following financial ratios for Procter & Gamble based on the provided financial data:
     • Current Ratio
     • Debt-to-Equity Ratio
     • Gross Profit Margin
     • Net Profit Margin

1. Analysis and Discussion:
   • Analyze the impact of cash versus credit sales on liquidity and financial performance.
   • Discuss the treatment of accounts receivable and inventory under the accrual basis of accounting.
   • Evaluate the implications of operating expenses on profitability and operational efficiency.
   • Discuss any potential financial risks or opportunities based on the financial statements prepared.

1. Recommendations:
   • Based on the financial analysis, provide recommendations to Procter & Gamble's management regarding financial performance improvement strategies for the upcoming fiscal year.