The financial statements of P&G are presented in Appendix B. The company’s complete annual report, including the notes to the financial statements, is available online.

Instructions

Refer to these financial statements and the accompanying notes to answer the following questions.

a. What was P&G’s 2017 short-term debt and related weighted-average interest rate on this debt?

b. What was P&G’s 2017 working capital, acid-test ratio, and current ratio? Comment on P&G’s liquidity.

c. What types of commitments and contingencies has P&G’s reported in its financial statements? What is management’s reaction to these contingencies?