Analyzing and Interpreting Equity Accounts and Comprehensive Income Following is the shareholders’ equity section of the 2016 balance sheet for Procter & Gamble Company and its statement of shareholders’ equity.

June 30 (In millions, expect per share amounts) 2016 Shareholders’ Equity Convertible Class A preferred stock, stated value $1 per share (600 shares authorized) . . . . . . . . . . $ 1,038 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: 2016—4,009.2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,009 Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,714 Reserve for ESOP debt retirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,290)

Accumulated other comprehensive income/(loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (15,907)

Treasury stock, at cost (shares held: 2016—1,341.2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (82,176)

Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87,953 Noncontrolling interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 642 Total shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $57,983 Consolidated Statement of Shareholders’ Equity Dollars in millions; Shares in thousands Common Shares Outstanding Common Stock Preferred Stock Additional Paid-in Capital Reserve for ESOP Debt Retirement Accumulated Other Comprehensive Income (Loss)
Treasury Stock Retained Earnings Noncontrolling Interest Total Balance June 30, 2015. . . . . . . . . . 2,714,571 $4,009 $1,077 $63,852 $(1,320) $(12,780) $(77,226) $84,807 $631 $63,050 Net earnings . . . . . . . . . . . . . . . . . . 10,508 96 10,604 Other comprehensive income . . . . (3,127) (3,127)
Dividends to shareholders:
Common . . . . . . . . . . . . . . . . . . . (7,181) (7,181)
Preferred, net of tax benefits . . . (255) (255)
Treasury purchases . . . . . . . . . . . . (103,449) (8,217) (8,217)
Employee plan issuances. . . . . . . . 52,089 (144) 3,234 3,090 Preferred stock conversions. . . . . . 4,863 (39) 6 33 —
ESOP debt impacts . . . . . . . . . . . . 30 74 104 Noncontrolling interest, net . . . . . . (85) (85)
Balance June 30, 2016. . . . . . . . . . 2,668,074 $4,009 $1,038 $63,714 $(1,290) $(15,907) $(82,176) $87,953 $642 $57,983 Required

a. What does the term convertible (in reference to the company’s Class A preferred stock) mean?

b. How many shares of common stock did Procter & Gamble issue when convertible Class A preferred stock was converted during fiscal 2016?

c. Describe the transactions relating to employee plan issuances. At what average price was the common stock issued for employee stock plans during 2016?

d. What is other comprehensive income? What is the accumulated other comprehensive income account?
Explain.

e. What cash dividends did Procter & Gamble pay in 2016 for each class of stock?