5.2 Tutor Reconciliations:  Setting up Valuation Tutor for Proctor and Gamble (PG) Reconciliations

Step 1 (Getting to the Screen):  Launch Valuation tutor and click on the button Financial Statement Analysis and Valuation.

Click on the button Download Textbook Dataset. 

Tip:  If you are already in Valuation Tutor’s Financial Statement Analysis and Valuation using the regular data set and you want to get to the above screen below just click on the Data Menu, select Download Data and then click “Yes” when prompted.

Select the menu item View Filings and click on “SEC Filing Viewers at Bottom.”

Now set up the screen as follows for P&G Reconciliations:

Step 2 (Setting Up the Screen for P&G):

Our objective is to set up the screen to reconcile P&G directly from their 10-K dated 13^th August, 2010.  You do this in the following way.  First, select Proctor and Gamble (circled in red at top of the screen).  This brings in P&G from the textbook dataset.  Second, select Price Ratios and in particular Price to Earnings Ratio circled in yellow (top LHS of the screen).  Third, type in the ticker PG followed by Enter in the two places at the bottom of the screen (the smaller green circles).  This selects the interactive statements for P&G filed with the SEC.  Finally, in the bottom LHS select 13^th August 2010 10-K from the dropdown and further select “Consolidated Statement of Earnings (USD $).  In the bottom RHS repeat this by selecting 13^th August 2010 10-K, and now select “Consolidated Balance Sheet (USD $). 

The screen should now appear as above.  Note you are ready to compute ratios from the Income Statement and Balance Sheet information.  If you needed the Cash Flow Statement or different parts of the same Statement you can mix and match as you like (e.g., at the bottom have Income Statement, Balance sheet; Income Statement, Cash Flow Statement; Balance Sheet, Cash Flow Statement; and so on.  You can even have a third sheet if you want to on the RHS of the screen replacing the textbook.  In this way the screen is designed for reconciliation but most ratios will only involve two statements at most.