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.

Instructions

Refer to P&G's financial statements and the accompanying notes to answer the following questions.

a. What amounts relative to income taxes does P&G report in its:

1. 2017 income statement?

2. June 30, 2017, balance sheet?

3. 2017 statement of cash flows?

b. P&G's income taxes in 2015, 2016, and 2017 were computed at what effective tax rates? (See the notes to the financial statements.)

c. How much of P&G's 2017 total income taxes was current tax expense, and how much was deferred tax expense?

d. What did P&G report as the significant components (the details) of its June 30, 2017, deferred tax assets and liabilities?