Professional Documents
Culture Documents
financial information the 2012, 2013, and 2014. On the balance sheet, we
are given their financial information for the years of 2013 and 2014 and
liabilities. Procter and Gamble had both their long-term and debt owed
within one year increase in value that they owed and while that could
happen, a successful company like them should be able to cover more than
see that there net sales increases from each year they give us (2012, 2013,
2014), but we also see that the cost of goods sold are also increasing as the
years increase. Their dividend per common share also increasing, which
provides evidence that the company is doing well and becoming worth more
income (2012, 2013, 2014) and we see that the company gained around
2104. While it isnt by very much they do decrease in number which could
mean multiple things, but as a successful corporation it only makes sense
that they company must have bought their portion of the company back little
by little over the years through repurchase. On the statement of cash flows
we are given information from the years 2012, 2013, and 2014. On this
statement, we see that Procter and Gambles cash and cash equivalents
have increase in almost double over the three years, starting out at
increases in revenue they have balanced it well with being able to increase
their assets, but that they were also able to balance their debt and liabilities
as well.
what this company is going through. With all this information, we are able to
learn what this corporation is going through when it comes to their finances,
we also have the ability to see them growing in strength. Procter and
Gamble seem to be on an up climb and not coming down at any point soon,
it seems that they plan to stay a power house corporation for a little longer.
Chapter-by-chapter Section
Chapter 2
of loss transfer over to the customer. This can happen on either the
day of shipment or the day of receipt by the customer. When it
found on the balance sheet, but in Note 3 where it tells us the initial
intangible assets which are both on the balance sheet and in Note2.
assets held for sale on the balance sheet as well as the section
liabilities too.
(c) We can determine that the accounting principle used by Procter and
another way.
(d)Procter and Gambles accounting policy towards advertising is
principle.
Chapter 3
(a) As seen on the balance sheet Procter and Gambles total assets are
$139,263,000,000.
(b)According to the balance sheet Procter and Gamble had a total of
billion in both 2013 and 2014 according to the Selling, General and
statements the accounts that I saw that the accounts that could
affect this are other normal expense accounts and other tax
deferrals.
(f) According to Procter and Gambles consolidated statements of cash
Chapter 4
(a) Procter and Gamble use a multiple step income statement. They
may have caused an abnormal loss. It also allows them to see what
sales decreased from 2013 and the cost of products sold increased
Not all income comes from the same source so splitting it up allows
you to how the company in both aspects and where the majority of
their income comes from. The operations show the revenue of their
2009 to 2014 they include the ratios: net earnings margin from
diluted net earnings per common share and dividends per common
share.
Chapter 5
(a) Procter and Gamble chose to adopt the report form of a balance
statement, as they have each of their section one above the other
on the same page. They could have adopted the account form
which lists assets by sections on the left sides and the liabilities and
schedules.
(c) Procter and Gambles investments are recorded on the balance
2014, the working capital was $2,109,000,000 and on June 30, 2013
it was $6,047,000,000.
(d)In 2014 Procter and Gambles cash flows from its operating was
activities over the period 2012 to 2014 were positive. The change in
means they can only cover 41.4% of their current liabilities. You get
liabilities (33,726). To get the cash debt coverage we take the net
(74,290) to get 0.188. This means you are only able to cover 18.8%
of the total liabilities. The free cash flow is equal to the net cash
minus dividends (6,911) or $3,199. This is the amount you have left
over at the end and with a positive number it shows that Procter
Chapter 7
(a) Procter and Gambles cash and cash equivalents reported on their
accounts, thus suggesting that bad debt is not material for this
Procter and Gamble since they are one of the biggest corporations
industry its not a very large influence on their success. With the
that much when it comes to not breaking at least even. They sell
their products out to mostly stores who sell consumer goods. The
fact they never have to worry about not being paid back unless the
Summary:
Throughout this project I found a few things very interesting and had
issues with more than I would like to admit. To start I found it interesting that
Procter and Gamble did not have an allowance for doubtful accounts section
even though they are a successful corporation that sends their products to
other distributers all over the world. I also found it odd that they didnt have
any assets held for sale in 2013, but then had $2,849,000,000 held in 2014.
I also found it easy to navigate the financial notes and that surprised me, as I
thought I would have struggled with that, but they were set up in a way that
was easy to follow. On the same not however, while it was easy to navigate
things werent always in the place that I thought they would be and that
threw me off a few times. I also struggled with a few of the questions, but
ended up doing okay after looking it all up in previous chapters, some things