• Using the information provided in the Excel file and the case, create a 2009financial forecast of the income statement and the balance sheet,using the following approach:
  • Exhibit TN1: complete the ratio analysis of Monsanto which will support the development of a forecast
  • General assumptions and exclusions for the forecast:
    • Do not forecast long-term debt and equity accounts
    • Assume interest expense remains at the 2008 level
    • Assume a 20% growth in corn seeds and traits and a 10% growth in RoundUp

A B C D E F G H MONSANTO INC Exhibit 1 Income Statement (in $ millions) A 5 Years ended August 31, 2005 2006 2007 2008 7 Net Sales B Roundup 2,049 2,262 2,568 4,094 9 Corn seeds and traits 1,494 1,793 2,807 3,542 10 All other 2,732 3,010 2,974 3,729 11 6,275 7,065 8,349 11,365 12 Cost of Goods Sold 3,280 3,622 4,119 5,188 13 Gross Profits 2,995 3,443 4,230 6,177 14 15 Selling, General and Admin 1,404 1,604 1,858 2,312 16 Research & Development 813 700 963 1,144 17 Operating Expenses 2,217 2,304 2,821 3,456 18 19 Net Income from Operations 778 1,139 1,409 2,721 20 21 Other Expenses 304 (13) (123) (312) 22 Interest Expense 115 133 136 110 23 Income Before Taxes 359 1,019 1,396 2,923 24 Income Taxes 104 330 403 899 25 Net Income 255 689 993 2,024 26 27 28 29Exhibit TNI MONSANTO COMPANY Growth Rates and Financial Ration PARTI: SALES GROWTH BY PRODUCT 2016 CAGE Roundup Com seeds and traits All other 10 PART2: FINANCIAL RATIOS 11 Income Statement 2405 2407 12 Cost of Goods Sold (COGS) COGS Sikes 14 Selling, General and Admin (SGA) SGA/Saks 15 Research & Development (RD) RD/Sales 18 Other Expenses (OF) OFSaks 19 Income Taxes (TAX) TAX/Taxable 20 21 Balance Sheet 22 Operader Current Assets Cash Cash Sales 24 Accounts Receivable (AR) ARSaks'365 25 Inventory (INV) COGSINV 25 Other Current Asket (OCA) OCARSaks 29 Property, Plant & Equipment (PPE) SaksPPE 30 Goodwill (GW) SkaGW 31 Other Long-Term Asses (OLTA) SikesOLTA Operaday Current LlabWiles 34 Accounts Payable (AP) ANCOGS 365 Income Taxes Payable (TaxP) TaxPiSikes 36 Deferred Revenues (DR) DR Saks Other Accrual (ACCR) ACCR/Sales RE