Question: Using an Internet search tool locate Procter Gamble s investor
Using an Internet search tool, locate Procter & Gamble's investor relations web site. Under "Financial Reporting," you will find the company's 2009 annual report. In 2009, the company reported $8.6 billion in "accrued and other liabilities" and $79.0 billion in revenue, such that accrued and other liabilities equaled 10.9 percent of revenue. Using data provided in Note 3 of the annual report, discuss why a forecast ratio of 10.9 percent going forward would distort your forecast of free cash flow. How should the balance sheet be expanded to prevent this?
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