WILL THUMBS FOR CORRECT ANSWR!! :)

1. What is book value of common equity (common shareholders equity)?

Common Equity = $ ----- millions

2. What is the net working capital? Recall that networking capital is the difference between current assets and current liabilities.

Net working capitol = $ ___ millions.

3. What is the most recent cash flow from operating activities? cash flow from operating activities = $ ______ millions.

4. What is the debt ratio? Recall that the debt ratio is total debt divided by total assets. Debt ratio = _________%

5. What is the return on (common) equity or ROE? recall that return on equity is net income divided by common equity. Common equity is total equity minus preferred stock.

Return on (common) equity = _________%

36 The Procter & Gamble Company Consolidated Statements of Earnings Amounts in millions except per share amounts: Years ended June 30 NET SALES Cost of products sold Selling, general and administrative expense Venezuela deconsolidation charge OPERATING INCOME Interest expense Interest income Other non-operating income/expense), net EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Income taxes on continuing operations NET EARNINGS FROM CONTINUING OPERATIONS NET EARNINGS/(LOSS) FROM DISCONTINUED OPERATIONS NET EARNINGS Less: Net earnings attributable to noncontrolling interests NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE 2017 2016 2015 S 65,058 $ 65,299 $ 70,749 32,535 32.909 37,056 18,568 18,949 20,616 2,028 13,955 13,441 11,049 465 579 626 171 182 149 (404) 325 440 13,257 13,369 11,012 3,063 3,342 2,725 10,194 10,027 8,287 5,217 577 (1,143) 15,411 10.604 7,144 85 96 108 S 15,326 $ 10,508 $ 7,036 BASIC NET EARNINGS PER COMMON SHARE:) Earnings from continuing operations S 3.79 $ 3.59 $ 2.92 Earnings/(loss) from discontinued operations 2.01 0.21 (0.42) BASIC NET EARNINGS PER COMMON SHARE $ 5.80 $ 3.80 $ 2.50 DILUTED NET EARNINGS PER COMMON SHARE: () Earnings from continuing operations s 3.69 $ 3.49 $ 2.84 Earnings/(loss) from discontinued operations 1.90 0.20 (0.40) DILUTED NET EARNINGS PER COMMON SHARE $ 5.59 $ 3.69 $ 2.44 DIVIDENDS PER COMMON SHARE 2.70 $ 2.66 $ 2.59 Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble. See accompanying Notes to Consolidated Financial Statements. 38 The Procter & Gamble Company Consolidated Balance Sheets 2017 2016 5,569 $ 9,568 4,594 7,102 6,246 4,373 Amounts in millions; As of June 30 Assets CURRENT ASSETS Cash and cash equivalents Available-for-sale investment securities Accounts receivable INVENTORIES Materials and supplies Work in process Finished goods Total inventories Deferred income taxes Prepaid expenses and other current assets Current assets held for sale TOTAL CURRENT ASSETS PROPERTY, PLANT AND EQUIPMENT, NET GOODWILL TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET OTHER NONCURRENT ASSETS TOTAL ASSETS 1,308 1,188 529 563 2,787 2,965 4,624 4,716 1,507 2,139 2,653 7.185 26,494 33,782 19,893 19,385 44,699 44,350 24,187 24,527 5,133 5,092 $ 120,406 $ 127,136 . S 9,632 $ 7,024 - 13,554 30,210 18,038 8,126 8,254 9,325 7,449 2,343 11.653 30,770 18,945 9,113 10.325 69.153 64,628 Liabilities and Shareholders' Equity CURRENT LIABILITIES Accounts payable Accrued and other liabilities Current liabilities held for sale Debt due within one year TOTAL CURRENT LIABILITIES LONG-TERM DEBT DEFERRED INCOME TAXES OTHER NONCURRENT LIABILITIES TOTAL LIABILITIES SHAREHOLDERS' EQUITY Convertible Class A preferred stock, stated value $1 per share (600 shares authorized) Non-Voting Class B preferred stock, stated value $1 per share (200 shares authorized) Common stock, stated value $1 per share (10,000 shares authorized; shares issued: 2017 - 4,009.2, 2016 - 4,009.2) Additional paid-in capital Reserve for ESOP debt retirement Accumulated other comprehensive income/(loss) Treasury stock, at cost (shares held: 2017-1,455.9, 2016 - 1,341.2) Retained earnings Noncontrolling interest TOTAL SHAREHOLDERS' EQUITY TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1,006 1,038 4,009 4,009 63,641 63,714 (1,249) (1,290) (14,632) (15,907) (93,715) (82,176) 96,124 87,953 594 642 57,983 S 120,406 $ 127,136 55,778 See accompanying Notes to Consolidated Financial Statements. 40 The Procter & Gamble Company Consolidated Statements of Cash Flows 2016 $ 6,836 2015 $ 8,548 10,604 3,078 7,144 3,134 335 (815) (41) 450 35 116 1,285 204 184 15,435 337 (803) (766) 2,028 2.174 349 313 928 (976) 746 14,608 (3,314) 432 (3,736) 4,498 (908) (137) (3.647) 1,203 (186) (2,815) 1,354 (996) Amounts in millions; Years ended June 30 2017 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR $ 7,102 OPERATING ACTIVITIES Net eamings 15,411 Depreciation and amortization 2,820 Loss on early extinguishment of debt 543 Share-based compensation expense 351 Deferred income taxes (601) Gain on sale of assets (5,490) Venezuela deconsolidation charge Goodwill and intangible asset impairment charges Change in accounts receivable (322) Change in inventories 71 Change in accounts payable, accrued and other liabilities (149) Change in other operating assets and liabilities (43) Other 162 TOTAL OPERATING ACTIVITIES 12,753 INVESTING ACTIVITIES Capital expenditures (3,384) Proceeds from asset sales 571 Cash related to deconsolidated Venezuela operations Acquisitions, net of cash acquired (16) Purchases of short-term investments (4,843) Proceeds from sales and maturities of short-term investments 1,488 Pre-divestiture addition of restricted cash related to the Beauty Brands divestiture (874) Cash transferred at closing related to the Beauty Brands divestiture (475) Release of restricted cash upon closing of the Beauty Brands divestiture 1,870 Cash transferred in Batteries divestiture Change in other investments (26) TOTAL INVESTING ACTIVITIES (5,689) FINANCING ACTIVITIES Dividends to shareholders (7,236) Change in short-term debt 2,727 Additions to long-term debt 3,603 Reductions of long-term debt Treasury stock purchases (5,204) Treasury stock from cash infused in Batteries divestiture Impact of stock options and other 2,473 TOTAL FINANCING ACTIVITIES (8,568) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (29) CHANGE IN CASH AND CASH EQUIVALENTS (1,533) CASH AND CASH EQUIVALENTS, END OF YEAR S 5,569 SUPPLEMENTAL DISCLOSURE Cash payments for interest S 518 Cash payment for income taxes 3,714 Divestiture of Batteries business in exchange for shares of P&G stock Divestiture of Beauty business in exchange for shares of P&G stock and assumption of debt 11,360 Assets acquired through non-cash capital leases are immaterial for all periods. (1) Includes $543 of costs related to early extinguishment of debt. Includes $1,730 from cash infused into the Batteries business pursuant to the divestiture agreement (see Note 13). (143) 93 (5,575) (163) (2,890) (7,436) (418) 3,916 (2,213) (4,004) (1.730) 2,672 (9,213) (7,287) (2,580) 2.138 (3,512) (4,604) (4,931) (2) 2,826 (13,019) (381) 266 $ 7,102 (411) (1,712) 6,836 $ $ $ 569 3,730 4,213 678 4,558 (2) See accompanying Notes to Consolidated Financial Statements