b. Calculate the ratio of the depreciation and amortization expense for 2017 reported in the Consolidated Statements of Cash Flows, Supplemental Financial Statement Data to the total cost (not net book value) of property, plant, and equipment reported in the schedule. (Round your percentage answer to 1 decimal place. (eg 32.6)) Ratio % c. Based on the ratio calculated in part b and the depreciation method being used by Campbell's, what is the average useful life being used for its depreciation calculation? (Round your answer to 1 decimal place.) Average useful life years d. Assume that the use of an accelerated depreciation method for 2017 would have resulted in 25% more depreciation and amortization than reported by Campbell's at July 30, 2017. By what percentage would this have reduced the retained earnings amount reported at July 30, 2017? (Round your percentage answer to 1 decimal place. (eg 32.6)) Reduction in retained earnings % CAMPBELL SOUP COMPANY Consolidated Statements of Earnings (millions, except per share amounts) 2017 2016 2015 7,890 $ 7,961 $ 8,082 $ 5.300 884 601 117 4,831 817 488 98 238 18 6,490 1,400 112 5,181 893 641 124 131 31 7,001 960 24 102 7,028 1,054 115 108 5 4 3 Net sales... Costs and expenses Cost of products sold Marketing and selling expenses Administrative expenses Research and development expenses. Other expenses / (income). Restructuring charges. Total costs and expenses.. Earnings before interest and taxes Interest expense Interest income Earnings before taxes Taxes on earnings Net earnings Less: Net earnings (loss) attributable to noncontrolling interests Net earnings attributable to Campbell Soup Company Per Share - Basic Net earnings attributable to Campbell Soup Company Weighted average shares outstanding - basic Per Share - Assuming Dilution Net earnings attributable to Campbell Soup Company Weighted average shares outstanding - assuming dilution 849 949 1,293 406 286 283 887 563 666 S 887 $ 563 $ 666 2.91 $ 1.82 $ 2.13 305 309 312 $ 2.89 $ 1.81 $ 2.13 307 311 313 See accompanying Notes to Consolidated Financial Statements. CAMPBELL SOUP COMPANY Consolidated Balance Sheets (millions, except per share amounts) July 30, 2017 July 31, 2016 319 $ 605 902 74 1,900 2.454 2,115 1.118 139 7,726 $ 296 626 940 46 1.908 2.407 2.263 1.152 107 7.837 $ S 1,037 $ 666 561 1,219 610 604 111 Current assets Cash and cash equivalents Accounts receivable, net Inventories Other current assets Total current assets. Plant assets, net of depreciation Goodwill Other intangible assets, net of amortization Other assets ($51 as of 2017 and 34 as of 2016 attributable to variable interest entity) Total assets... Current liabilities Short-term borrowings. Payable to suppliers and others Accrued liabilities Dividends payable Accrued income taxes Total current liabilities. Long-term debt Deferred taxes. Other liabilities Total liabilities. Commitments and contingencies Campbell Soup Company shareholders' equity Preferred stock, authorized 40 shares, none issued Capital stock. $.0375 par value; authorized 560 shares, issued 323 shares Additional paid-in capital... Earnings retained in the business Capital stock in treasury, at cost. Accumulated other comprehensive loss... Total Campbell Soup Company shareholders' equity. Noncontrolling interests Total equity. Total liabilities and equity 20 2.395 2,499 490 697 6,081 100 22 2.555 2.314 396 1,039 6.304 12 359 2,385 (1,066) (53) 1.637 8 1.645 7,726 $ 12 354 1.927 (664) (104) 1.525 8 1.533 7.837 CAMPBELL SOUP COMPANY Consolidated Statements of Cash Flows (millions) 2017 2016 2015 $ 887 $ 563 $ 666 6 102 57 212 18 60 (258) 318 93 18 141 31 64 317 308 (30) 6 118 303 (49) 15 Cash flows from operating activities: Net earnings... Adjustments to reconcile net earings to operating cash flow Impairment charges Restructuring charges.. Stock-based compensation Pension and postretirement benefit expense (income). Depreciation and amortization Deferred income taxes. Other, net Changes in working capital, net of acquisitions Accounts receivable Inventories Prepaid assets Accounts payable and accrued liabilities Pension fund contributions Net receipts from hedging activities Other Net cash provided by operating activities. Cash flows from investing activities: Purchases of plant assets Sales of plant assets Business acquired, net of cash acquired Other, net Net cash used in investing activities, 24 59 9 15 28 46 (27) (48) (5) 2 (53) 1,291 12 (18) 10 30 (5) 11 44 (58) 1,491 (52) 1,206 (338) (341) 5 (380) 15 (232) (30) (18) (354) (368) (603) 245 (762) 215 100 300 211 (90) (400) (420) (437) 2 (390) (143) 2 (309) (394) (244) 9 Cash flows from financing activities: Net short-term borrowings (repayments). Long-term borrowings Long-term repayments Repayments of notes payable. Dividends paid Treasury stock purchases. Treasury stock issuances Contributions from noncontrolling interest Payments related to tax withholding for stock-based compensation. Other, net. Net cash used in financing activities Effect of exchange rate changes on cash Net change in cash and cash equivalents Cash and cash equivalents-beginning of period Cash and cash equivalents - end of period See accompanying Notes to Consolidated Financial Statements, (22) (21) (911) 11 (1,099) 5 (18) (3) (550) (32) 21 232 253 23 43 296 253 $ 319 $ 296 S