b. Calculate the ratlo of the depreclation and amortization expense for 2017 reported In the Consolidated Statements of Cash Flows, Supplemental Financlal 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 ratlo calculated in part b and the depreclation method belng used by Campbell's, what Is the average useful life belng used for Its depreciation calculation? (Round your answer to 1 decimal place.) Average useful life years d. Assume that the use of an accelerated depreclation method would have resulted In 25% more accumulated depreclatlon than reported at July 30, 2017, and that Campbell's consolidated balance sheets would have been affected by the entire difference. By what percentage would this have reduced the retalned earnings amount reported at July 30, 2017? (Round your percentage answer to 1 decimal place. (eg 326)) Reduction in retained earnings Balance Sheetn Accounts receivable Customer accounts receivable 561 S S66 Allowances (12) Subtotal 550 S 554 Oder 72 626 laventories Raw materialh, containers and sapplies 377 S 391 Finished products 549 940 Other cu ts Fair value of derivatives Odher 41 14 S 46 Mant aets Land Buldings 1,553 1.488 Machisery and equipment 4,231 4.042 sin Project in progress Total cost 195 176 6,043 S 5,764 Accumulated depercition (3,559) 0.357) 2454 S 2407 Other assets lavestents 47 Defeed taes 36 41 Other 34 19 139 $ 107 Accrued liabilnes d bef. Fair value of derivatives.. Accrued tade and consumer promotion programs 241 S 263 16 43 131 130 Acerued interest. 34 35 Restracturing 24 57 Other. 103 604 Other liabilities Pemion brarfits Deferred compenation 501 261 $ 96 100 Postretirement benefits 247 285 Fair value of derivatives 44 Uwecopnined tax benefits 31 34 17 Restracturing Other 1.039 * Depeeciation expeme was S299 in 2017, 5288 in 2016 and 5286 in 2015. Buildings ee depreciated over periods anging fom 7to 45 years. Machunery and equipment are depreciated ever periods generally ranging from 2 to 20 years * The defered compeasation obligaton sepresents unfanded plans maintained for the purpose of peovidng our drectors and a of our executives the oppomanity to defer a portion of their compensation. All forms of compensation contributed the defersed compemation plans are accounted for in accordance with the underlying program Deferrah and our contributions e credited toM accout and o vestmeats ae actally certain o an imvestment account in the participant's name, although no finds ace actually contributed to the i Ino chding (1) a book account ivestment tatks the to or C f e hatacks e fa ad instihtonal lad (3) a book account that performance of the Vanguard Total Intemational Stock ladex, (5) a book account that tracks the performance of the Vanguad Total Bond Market ladex: (6) a book account that tracks the performance of the Vanguard Short-Term Bond lndex, and (7) a book account that tracks the BlackRock Shoet-Term lavestement Fund Participats can reallocate investments daily and are eutiled to the gains and loses on investment finds. We recognize an amount in the Consolidated Statements of Earmings for the market appreciation depreciation of each fund the performance of the Vanguard Extended Market Index (4) a book account that tracks the CAMPBELL SOUP COMPANY Conselidated Statements ef Earnings (millions, encept per share amount) Net sales Cos and epees 5300 Cost of producn selM. 5,18 Marketing and seling expenes Adinive expees Resech and development expemes Oer expenses/(income) 641 601 124 117 131 24 Restractuning charges Total covt d espees Taraing befere inderest and tases 18 31 102 1.001 7.08 960 1,054 laterest epense 112 108 laterest icoe Eangs beler laes L293 549 949 Tanes on amings 286 283 Net earnings.. 563 Lew: Net eamings lou) attibutable to ncncontrolling interrsts. Net earnings attributable to Campbell Seup Company Per Share-Basie Net earnings attribatable te Capbell Soup Company..... 666 213 2.91 S Weighted verage shares outanding-banic 309 312 Per Share-Auming Diluien Net earnings aibatable te Campbell Seup Cempan Weighted average dhares outanding-aming dlution 213 311 313 See accompanying Notes so Comselidaned Financial Statements. CAMPBELL SOUP COMPANY Caslidated BalaRce Sheets (nillions, escept per share amount) Ju Ju 31 Carrent aets Cah d cah equivaleat 319 S 296 Acconts recevable, net 626 lavestories 940 Other eat assets 14 45 Tetal cat asets 1.900 Plant asets, et of depreciation 1454 2,407 Goodwill Ocher istangble avsets, net of amortizanion Ober asets (351 as of 2017 and $34 an of 2016 attributable to variable interest eatity) Tetal asets. Carreat abates Short-term boowings Pavable te spien ad ot LIS2 139 107 7837 1219 610 Accrued labilities 604 Dividends payable Accred income taes 111 100 20 22 Tetal curreat abaries 2555 Long term debe Deferred tao 2.314 490 Oter labilines Total abiies Commitments and centingreries Campbell Soup Company sharebolders equity Preferred stock, authoriand 40 sher, none iswand 6.081 6 304 Capital stock, S.0375 par value, authoriznd 500 shares, ived 323 shares. Additional paid in capital Eamings ortained in the busines Capital stock in teavry, at cest Accumlined oher comprehennive los. Total Campbel Seup Company sharebolders' equity Noncostolhng teest Tetal eguity Tetal abies and equity 12 12 359 354 1927 (664) (194) 1637 L525 1533 1645 7837 See accopanying Notesto Conselidated Finecial Satements CAMPBELL SOUP COMPANY Consolidated Statements of Cash Flows (millions) 2017 2016 2015 Cash flows from operating activities: Net earnings 887 S 563 S 666 Adjustments to reconcile net eamings to operating cash flow Impaiment charges 212 141 Restructuring charges.. Stock-based compensation. Pension and postretirement beneft expense (income) Depreciation and amortization 18 31 102 60 64 57 (258) 317 118 318 308 303 Deferred income taxes 93 (30) (49) Other, net.. 18 15 Changes in working capital, net of acquisitions Accounts receivable. 28 24 12 Inventories 46 59 (18) Prepaid assets. (27) 10 Accounts payable and accrued liabilities (48) 15 30 Pension fund contributions (5) (2) (5) Net receipts from bedging activities 44 11 Other (52) 1.206 (53) (58) Net cash provided by operating activities. 1.291 1.491 Cash flows from investing activities: Purchases of plant assets Sales of plant assets Business acquired, net of cash acquired (341) (338) (380) 15 (232) Other, net (30) (18) (6) Net cash used in investing activities, (368) (354) (603) Cash flows from financing activities: Net short-term borrowings (repayments). 245 (762) 100 Long-term borrowings 211 215 300 Long-term repayments. (90) Repayments of notes payable. Dividends paid. (400) (420) (309) (394) (390) Treasury stock purchases. Treasury stock issuances (437) (143) (244) Contributions from noncontrolling interest Payments related to tax withbolding for stock-based compensation (22) (21) (18) Other, net. (3) 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 perlod Cash and cash equivalents- end of period (1,099) (911) (550) 11 (32) 23 43 21 296 253 232 319 $ 296 S 253 See accompanying Notes to Consolidated Financial Statements. b. Calculate the ratlo of the depreclation and amortization expense for 2017 reported In the Consolidated Statements of Cash Flows, Supplemental Financlal 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 ratlo calculated in part b and the depreclation method belng used by Campbell's, what Is the average useful life belng used for Its depreciation calculation? (Round your answer to 1 decimal place.) Average useful life years d. Assume that the use of an accelerated depreclation method would have resulted In 25% more accumulated depreclatlon than reported at July 30, 2017, and that Campbell's consolidated balance sheets would have been affected by the entire difference. By what percentage would this have reduced the retalned earnings amount reported at July 30, 2017? (Round your percentage answer to 1 decimal place. (eg 326)) Reduction in retained earnings Balance Sheetn Accounts receivable Customer accounts receivable 561 S S66 Allowances (12) Subtotal 550 S 554 Oder 72 626 laventories Raw materialh, containers and sapplies 377 S 391 Finished products 549 940 Other cu ts Fair value of derivatives Odher 41 14 S 46 Mant aets Land Buldings 1,553 1.488 Machisery and equipment 4,231 4.042 sin Project in progress Total cost 195 176 6,043 S 5,764 Accumulated depercition (3,559) 0.357) 2454 S 2407 Other assets lavestents 47 Defeed taes 36 41 Other 34 19 139 $ 107 Accrued liabilnes d bef. Fair value of derivatives.. Accrued tade and consumer promotion programs 241 S 263 16 43 131 130 Acerued interest. 34 35 Restracturing 24 57 Other. 103 604 Other liabilities Pemion brarfits Deferred compenation 501 261 $ 96 100 Postretirement benefits 247 285 Fair value of derivatives 44 Uwecopnined tax benefits 31 34 17 Restracturing Other 1.039 * Depeeciation expeme was S299 in 2017, 5288 in 2016 and 5286 in 2015. Buildings ee depreciated over periods anging fom 7to 45 years. Machunery and equipment are depreciated ever periods generally ranging from 2 to 20 years * The defered compeasation obligaton sepresents unfanded plans maintained for the purpose of peovidng our drectors and a of our executives the oppomanity to defer a portion of their compensation. All forms of compensation contributed the defersed compemation plans are accounted for in accordance with the underlying program Deferrah and our contributions e credited toM accout and o vestmeats ae actally certain o an imvestment account in the participant's name, although no finds ace actually contributed to the i Ino chding (1) a book account ivestment tatks the to or C f e hatacks e fa ad instihtonal lad (3) a book account that performance of the Vanguard Total Intemational Stock ladex, (5) a book account that tracks the performance of the Vanguad Total Bond Market ladex: (6) a book account that tracks the performance of the Vanguard Short-Term Bond lndex, and (7) a book account that tracks the BlackRock Shoet-Term lavestement Fund Participats can reallocate investments daily and are eutiled to the gains and loses on investment finds. We recognize an amount in the Consolidated Statements of Earmings for the market appreciation depreciation of each fund the performance of the Vanguard Extended Market Index (4) a book account that tracks the CAMPBELL SOUP COMPANY Conselidated Statements ef Earnings (millions, encept per share amount) Net sales Cos and epees 5300 Cost of producn selM. 5,18 Marketing and seling expenes Adinive expees Resech and development expemes Oer expenses/(income) 641 601 124 117 131 24 Restractuning charges Total covt d espees Taraing befere inderest and tases 18 31 102 1.001 7.08 960 1,054 laterest epense 112 108 laterest icoe Eangs beler laes L293 549 949 Tanes on amings 286 283 Net earnings.. 563 Lew: Net eamings lou) attibutable to ncncontrolling interrsts. Net earnings attributable to Campbell Seup Company Per Share-Basie Net earnings attribatable te Capbell Soup Company..... 666 213 2.91 S Weighted verage shares outanding-banic 309 312 Per Share-Auming Diluien Net earnings aibatable te Campbell Seup Cempan Weighted average dhares outanding-aming dlution 213 311 313 See accompanying Notes so Comselidaned Financial Statements. CAMPBELL SOUP COMPANY Caslidated BalaRce Sheets (nillions, escept per share amount) Ju Ju 31 Carrent aets Cah d cah equivaleat 319 S 296 Acconts recevable, net 626 lavestories 940 Other eat assets 14 45 Tetal cat asets 1.900 Plant asets, et of depreciation 1454 2,407 Goodwill Ocher istangble avsets, net of amortizanion Ober asets (351 as of 2017 and $34 an of 2016 attributable to variable interest eatity) Tetal asets. Carreat abates Short-term boowings Pavable te spien ad ot LIS2 139 107 7837 1219 610 Accrued labilities 604 Dividends payable Accred income taes 111 100 20 22 Tetal curreat abaries 2555 Long term debe Deferred tao 2.314 490 Oter labilines Total abiies Commitments and centingreries Campbell Soup Company sharebolders equity Preferred stock, authoriand 40 sher, none iswand 6.081 6 304 Capital stock, S.0375 par value, authoriznd 500 shares, ived 323 shares. Additional paid in capital Eamings ortained in the busines Capital stock in teavry, at cest Accumlined oher comprehennive los. Total Campbel Seup Company sharebolders' equity Noncostolhng teest Tetal eguity Tetal abies and equity 12 12 359 354 1927 (664) (194) 1637 L525 1533 1645 7837 See accopanying Notesto Conselidated Finecial Satements CAMPBELL SOUP COMPANY Consolidated Statements of Cash Flows (millions) 2017 2016 2015 Cash flows from operating activities: Net earnings 887 S 563 S 666 Adjustments to reconcile net eamings to operating cash flow Impaiment charges 212 141 Restructuring charges.. Stock-based compensation. Pension and postretirement beneft expense (income) Depreciation and amortization 18 31 102 60 64 57 (258) 317 118 318 308 303 Deferred income taxes 93 (30) (49) Other, net.. 18 15 Changes in working capital, net of acquisitions Accounts receivable. 28 24 12 Inventories 46 59 (18) Prepaid assets. (27) 10 Accounts payable and accrued liabilities (48) 15 30 Pension fund contributions (5) (2) (5) Net receipts from bedging activities 44 11 Other (52) 1.206 (53) (58) Net cash provided by operating activities. 1.291 1.491 Cash flows from investing activities: Purchases of plant assets Sales of plant assets Business acquired, net of cash acquired (341) (338) (380) 15 (232) Other, net (30) (18) (6) Net cash used in investing activities, (368) (354) (603) Cash flows from financing activities: Net short-term borrowings (repayments). 245 (762) 100 Long-term borrowings 211 215 300 Long-term repayments. (90) Repayments of notes payable. Dividends paid. (400) (420) (309) (394) (390) Treasury stock purchases. Treasury stock issuances (437) (143) (244) Contributions from noncontrolling interest Payments related to tax withbolding for stock-based compensation (22) (21) (18) Other, net. (3) 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 perlod Cash and cash equivalents- end of period (1,099) (911) (550) 11 (32) 23 43 21 296 253 232 319 $ 296 S 253 See accompanying Notes to Consolidated Financial Statements