The Procter & Gamble Company (P&G)

Instructions

Refer to P&G's 2014 financial statements and the accompanying notes to answer the following questions.

(a)

What cash outflow obligations related to the repayment of long-term debt does P&G have over the next 5 years?

(b)

P&G indicates that it believes that it has the ability to meet business requirements in the foreseeable future. Prepare an assessment of its liquidity, solvency, and financial flexibility using ratio analysis.

 
 
 
 

The Procter & Gamhle Company 47 Consolidated Statements of Earnings Amounts in millions except per share amounts: Years ended June 30 2014 2013 2012 $ 83,062 S 82,581 82,006 NET SALES Cost of prodocts sold 42,460 41,391 41411 Selling, general and administrative expense 25,314 26,552 25,984 Goodwill and indefinite-lived intangible asset impairment charges 308 1,576 OPERATING INCOME 15,288 14,330 13035 Interest expense 709 66? 769 Interest income 100 87 77 Other non-operating income, net 206 942 185 EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 14,885 14,692 12,528 Income taxes on continuing operations 3,178 3,391 3,378 NET EARNINGS FROM CONTINUING OPERATIONS 11,707 11,301 9,150 NET EARNINGS FROM DISCONTINUED OPERATIONS 78 101 1,754 NET EARNINGS 11,785 I1 402 10,904 Less: Net earnings attributable to noncuntrolling interests 142 90 148 NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE 11,643 S 11,312 10,756 HASIC NET EARNINGS PER COMMON SHARE ": Eamings from continuing operations 4.16 S 4.00 3.18 Earnings from discontinued operations 0.03 0.04 0.64 BASIC NET EARNINGS PER COMMON SHARE 4.19 4.04 3.82 DELUTED NET EARNINGS PER COMMON SHARE ": 3.98 3.83 306 Earnings from continuing operations Earmings from discontiued operations 0.03 0.03 0.60 DILUTED NET EARNINGS PER COMMON SHARE 4.01 3 86 3.66 DIVIDENDS PER COMMON SHARE 2.45 2 29 2.14 Basic net earnings per common share and diluted net earmings per common share are calcukated on net carnings attributable to Procter & Gamble.