The financial statements of P&G are presented in Appendix B. The companys complete annual report, including the

Question:

The financial statements of P&G are presented in Appendix B. The company’s complete annual report, including the notes to the financial statements, is available online.

Instructions

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

a. What type of income statement format does P&G use? Indicate why this format might be used to present income statement information.

b. What are P&G’s primary revenue sources?

c. Compute P&G’s gross profit for each of the years 2015–2017. Explain why gross profi t decreased in 2017.

d. Why does P&G make a distinction between operating and nonoperating revenue?

e. What financial ratios did P&G choose to report in its “Financial Summary” section covering the years 2012–2017?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Financial Ratios
The term is enough to curl one's hair, conjuring up those complex problems we encountered in high school math that left many of us babbling and frustrated. But when it comes to investing, that need not be the case. In fact, there are ratios that,...

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