This individual project will involve modeling a cash sweep for The Clorox Company (CLX).

Specifically,
assume the following financial policy:

1. CLX pays 50 percent of net income in the form of a dividend each period.
2. If CLX needs cash in a particular period, the company will borrow using the long-term debt

account.

3. If CLX has cash available, the company first pays down long-term debt. Once debt is paid

off, any remaining cash is paid out to equity in the form of a share repurchase.

The start file is an equity-plugged model. Note that debt and interest expense forecasts are missing.

To complete the assignment, you will need to complete the following elements:

1. Complete the statement of cash flows. CLX does not report depreciation separately on the income
statement, so ignore depreciation in constructing the cash flow statement.
2. Construct a debt schedule. Note that the company currently has debt on the balance sheet as of
2021. Use the 2021 EOP balance as the BOP for 2022. The only changes to the debt account
should be (1) borrowing if the company needs cash, and (2) repayment if the company has cash
available. Assume an interest rate of 6 percent applied to the average debt balance for the period.
3. Prepare an equity schedule. Allow equity to roll forward with net income net of dividends and
share repurchases for the period. Dividends should be 50 percent of same-year net income. Share
repurchases should occur only if the debt is completely repaid.
4. Construct a cash available/needed schedule. Assume the company wants to maintain an end of
period cash balance no less than 4 percent of same-year sales.
5. Error trapping. The model will have circular references, so incorporate an error trapping feature.

Be consistent in use of formatting throughout the model, and adhere to the formatting norms of the class
(blue, black, bold, etc.)

You may use the models from class as a guide, but the final model should be your own work.