The financial statements of Procter & Gamble (P&G) can be accessed at the book’s website.

Instructions

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

(a) What were P&G’s total assets at June 30, 2006? At June 30, 2005?

(b) How much cash (and cash equivalents) did P&G have on June 30, 2006?

(c) What were P&G’s research and development costs in 2004? In 2006?

(d) What were P&G’s revenues in 2004? In 2006?

(e) Using P&G’s financial statements and related notes, identify items that may result in adjusting entries for prepayments and accruals.

(f) What were the amounts of P&G’s depreciation and amortization expense in 2004, 2005, and 2006?