Financial Reporting Problem

The Procter & Gamble Company (P&G)

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.

http://www.pginvestor.com/interactive/lookandfeel/4004124/PG_2014_10K.pdf

Instructions

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

(a)

What was P&G's 2014 short-term debt and related weighted-average interest rate on this debt?

(b)

What was P&G's 2014 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?

The Proeser & Gamble Company 47 $ 83,062 $ 82581 82006 42,460 41.391 Selling, geteral and admitisaaive expense Goodwill and indeie-lived intuegible asset impairmem chaeges EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Income taxes on continuing operations NET EARNINGS FROM CONTINUING OPERATIONS NET EARNINGS FROMDISCONTINUED OPERATIONS 1402 NET EARNINGS ATTRIBUTABLE TO PROCTER& GAMBLE $ 11,643 11312 10,756 BASIC NET EARNINGS PER COMMON SHARE BASIC NET EARNINGS PER COMMON SHARE DILUTED NET EARNINGS PER COMMON SHARE 5 3.98 383 306 DILUTED NET EARNINGS PER COMMON SHARE DIVIDENDS PER COMMON SHARE $ 2.45 $ Basic net earings per common share and diluted net earnings per common share are calculated on net earmings attributable to Procter& Gamble The Proeser & Gamble Company 47 $ 83,062 $ 82581 82006 42,460 41.391 Selling, geteral and admitisaaive expense Goodwill and indeie-lived intuegible asset impairmem chaeges EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Income taxes on continuing operations NET EARNINGS FROM CONTINUING OPERATIONS NET EARNINGS FROMDISCONTINUED OPERATIONS 1402 NET EARNINGS ATTRIBUTABLE TO PROCTER& GAMBLE $ 11,643 11312 10,756 BASIC NET EARNINGS PER COMMON SHARE BASIC NET EARNINGS PER COMMON SHARE DILUTED NET EARNINGS PER COMMON SHARE 5 3.98 383 306 DILUTED NET EARNINGS PER COMMON SHARE DIVIDENDS PER COMMON SHARE $ 2.45 $ Basic net earings per common share and diluted net earnings per common share are calculated on net earmings attributable to Procter& Gamble