The 2015 annual report of The Procter & Gamble Company (P&G) is available at www.pginvestor.com, After reviewing P&G’s annual report, respond to the following questions:

a. Prepare a list of some of the products produced by P&G. In what industry does P&G operate? Who are some of P&G’s key competitors? (To identify the key competitors for P&G, you will need to access the internet [e.g., http://finance.yahoo.com] or obtain a copy of a recent research report for P&G.)

b. How much net income did P&G earn in 2013, 2014 and 2015? How much operating revenue did P&G report in 2013, 2014 and 2015? Are the trends in operating revenue and net income consistent and positive (1.e., increasing)?

c. How much cash flow from operations was generated by P&G in 2013, 2014 and 2015? Is the trend in the cash flow from operations consistent with the trend in operating revenue and net income? Calculate the ratio of the cash flow from operations divided by net income for 2013, 2014 and 2015. (Note: The ratio of cash flow from operations divided by net income is called the “operating funds ratio.””) What does this ratio tell you?

d. Calculate the ratio of total liabilities divided by total assets for 2014 and 2015. What does this ratio tell you? Is P&G principally debt-financed or principally equity-financed? Is the form of P&G’s financing changing over time?

e. Consider the audit report for P&G. Who are P&G’s auditors? What does P&G’s audit report say about the firm’s financial statements? Is there anything in P&G’s audit report that causes you any concern? If so, what?