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 % (millions, except per share amounts) 2017 7,890 2016 7,961 2015 8,082 $ S 5,300 4,831 817 5.181 893 884 601 488 641 98 124 117 238 131 24 102 18 31 7,001 960 6,490 1,400 112 5 7,028 1,054 108 3 115 4 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 1,293 406 949 283 286 887 563 666 S 887 S 563 $ 666 2.91 $ 1.82 S 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 S 319 $ 605 902 296 626 940 74 1,900 2.454 2,115 1,118 139 7,726 $ 1,908 2,407 2.263 1,152 107 7,837 S 1,037 $ 666 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 561 111 20 2,395 2.499 490 697 1,219 610 604 100 22 2,555 2,314 396 1,039 6,304 6,081 12 359 2,385 (1,066) (53) 1.637 12 354 1.927 (664) (104) 1,525 8 1,533 7,837 8 1.645 7,726 $ ....S 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 % (millions, except per share amounts) 2017 7,890 2016 7,961 2015 8,082 $ S 5,300 4,831 817 5.181 893 884 601 488 641 98 124 117 238 131 24 102 18 31 7,001 960 6,490 1,400 112 5 7,028 1,054 108 3 115 4 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 1,293 406 949 283 286 887 563 666 S 887 S 563 $ 666 2.91 $ 1.82 S 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 S 319 $ 605 902 296 626 940 74 1,900 2.454 2,115 1,118 139 7,726 $ 1,908 2,407 2.263 1,152 107 7,837 S 1,037 $ 666 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 561 111 20 2,395 2.499 490 697 1,219 610 604 100 22 2,555 2,314 396 1,039 6,304 6,081 12 359 2,385 (1,066) (53) 1.637 12 354 1.927 (664) (104) 1,525 8 1,533 7,837 8 1.645 7,726 $ ....S