Based on the case and previous calculations, please answer the following short answer questions. Note: Your instructor will need to manually grade these questions.

2. Based on the financials presented in Exhibits 1 and 2, how would you describe P&Gs financial position in the years 2016 and 2017? Do you think the company ought to make any major changes to improve its financial outlook? What changes would you suggest?

EXHIBIT 1 Income Statement (in millions of $) Year Ending June 30, 2016 June 30, 2017 65,058 June 30, 2015 70,749 Total Revenue 65,299 Operating Income 13,955 13,441 11,049 EBIT 13,257 11,012 13,369 10,604 Net Income 15,411 7,144 EXHIBIT 2 Balance Sheet (in millions of $) Year Ending June 30, 2017 June 30, 2015 June 30, 2016 33,782 Current Assets 26,494 29,646 Total Assets 120,406 127,136 129,495 Current Liabilities 30,210 30,770 29,790 Total Liabilities 64,628 69,153 66,445 Stockholder Equity 55,778 57,983 63,050