1 Why is the Working Capital value for Procter & Gamble (ticker: PG) for all covered years a negative number? Please select the best answer.

A) Accounts Payable are consistently causing a heavy demand on Current Assets.

B) They have a substantial amount in inventory.

C) Deferred Taxes have been a consistent drag on Current Assets.

2. Why is the Debt-to-Equity (D/E) ratio for Colgate (ticker: CL) so high across all years observed?

A) Relative to their level of sales, they have exceptionally high debt levels.

B) They have extremely low equity due to an abundance of Treasury Stock (i.e., accumulated stock buybacks).

C) They have been paying high dividends for years, which has resulted in not much Net Income retained for internal growth.