CU'The Procter & Gamble Company 35 Consolidated Statements of Earnings 67654 M NET SALES Cost of products sold Selling, general and administrative expense Goodwill and indefinite lived intangibles impairment charges OPERATING INCOME Interest expense Interest income Other non-operating income (expense), net EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Income taxes on continuing operations NET EARNINGS FROM CONTINUING OPERATIONS NET EARNINGS FROM DISCONTINUED OPERATIONS NET EARNINGS Less: Net camnings attributable to noncontrolling interests NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE 2019 2018 2017 $ 67,684 $ 66,832 $ 65,058 34,768 34,432 32,638 19,084 19,037 18,654 8.145 5,487 13,363 13,766 506 220 247 871 222 (215) 6,069 13 326 13.257 2,103 3,063 3,966 9,861 10.194 3.465 3,966 9,861 15,411 111 $ 3.897 $ 9.750 $ 15,326 BASIC NET EARNINGS PER COMMON SHARE:) Earnings from continuing operations $ 1.45 $ 3.75 $ 3.79 Earnings from discontinued operations 2.01 BASIC NET EARNINGS PER COMMON SHARE $ 1.45 $ 3.75 $ 5.80 DILUTED NET EARNINGS PER COMMON SHARE: Famines from continuing operations $ 1.43 $ 3.67 $ 3.69 Earnings from discontinued operations - 1.90 DILUTED NET EARNINGS PER COMMON SHARE $ 1.43 $ 3.67 $ 5.59 m Basie net earnings per common share and Diluted net camnings per common share are calculated on Net samnings attributable to Procter & Gamble Code Bate Sheets 4,2393 2,560 Asters CURRENT ASSETS Cash o shqalvalen Arabele i nscrit Accounts receivable INVENTORIES Ma and supplies Work in process Finished goods 4,951 4486 1,289 1,335 2215 Prepaid expenses and other current TOTAL CURRENT ASSETS PROPERTY. PLANT AND EQUIPMENT, NET GOODWILL TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET OTTER NONCURRENT ASSETS TOTAL ASSETS 20.600 45,175 23,902 40,273 24,215 6,863 115,095 5 5 118,310. $ 11,150 9,054 10.344 7.490 10,423 28,237 30.011 20,195 6899 20,863 6,163 10,211 67,516 10,164 65,427 Late Shareholders CURRENT LIABILITIES Accounts payable Accrued and other abilities Debt due within one year TOTAL CURRENT LIABILITIES LONG-TERM DEBT DEFERRED INCOME TAXES OTHER NONCURRENT LIABILITIES TOTAL LIABILITIES SHAREHOLDERS' EQUITY Convenble Class A preferred stock, stated value 51 per share (600 share thorund Non-Voting Class preferred stock, stated values per share 200 shares stored Common stock, stated valesi per shar(10000 shares a n d share issued 2019. 4.009 2, 2018 - 4,0092) Additional paid in capital Reserve for ESOP debt retirement Accumulated other comprehensive income oss) Treasury stock, ut cost shares held 2019 -1.504.5, 2018 -1.311.2) Reid amings Noncontrolling interest TOTAL SHAREHOLDERS' EQUITY TOTAL LIABILITIES AND SHAREHOLDERS' EOLITY 957 4,009 63,827 (1.146) (14,936) (100,406) 94.918 4.009 63,346 (1.204) (14,749) (99.211) 98 641 47.579 115.095 $2,883 S $ 118,310 38 The Conselldated Statements of Shareholders' Equity LOPD Bele 56376 1,290515.907) (182,176 5875953 56 597,983 1,275 16.999) 16.919) (247) 014) (14625 2,981 PIEEEEEE (166.166) 45.548 4.241 (12) 4 Pred set of tax beef Treasury Mock purchases Employee wock plans Preferred stock conversion ESOP debt impacto Noocontrolling interest BALANCE JUNE 30, 2017 Ne earings Other comprehensive 2,55297 54000 5100 51 5 13) 6514612) 591 719) 396,124 9,750 (133) (133) 5994 555.778 111 9.861 (2) (19) (17) equivalents ($2.7860 por (,057) (265) 7,057) (265) (7,005) 1662 C.004) 1,469 (81439) 21.655 4580 (39) 6 Como Preferred, net of tax benefits Trey stock purchases Employee stock plus Preferred stock conversions ESOP debt impacts Noocontrolling interest BALANCE JUNE 20, 2018 Impact of option of sew accounting and Nes earning Other coprensive 2,498,093 $4.009 957 563,846 (51,204) (514,749) 114 (113) (113) 399217) 39,541 SSW 35231 (200) (17) (56) 3,8973 026 1 140 Dividends and dividend equivalents (528975 per (7.156) (7,256) Preferred, et of tax benefits (263) (263) Treasury stock purchases 15,003) Employee stock plans 55,734 3,781 3,874 Preferred stock conversie 4,638 ESOP debt impacts Noscotrolling interest, et (245) (366) BALANCE JUNE 30,2019 2.564,751 54.009 8938 563,827 (51,146) ($14,996) (5100,406) 594,918 538 547,579 Includes $9,421 of treasury shares received as part of the share exchange in the Beauty Brands transaction (se Note 13) See accompanying Notes to Coalidated Financial Statements. Cantitated States of Cashews CASH, CASIE KOLTVALENTS AND RESTRICTED CASH, BEGINNING OF 2019 2018 2017 $ 1.599 55,569 58.098 2814 (1541) Depreciation and amortization Lost on early extinguish odobe Share-based compensation expense Deferred income taxes Gas on sale of Godsdie-lived the impairment charges Change in receivable Chape intona Change is accounts payable, accrued and other liabilities Change in other operating sites and 12.753 TOTAL OPERATING ACTIVITIES INVESTING ACTIVITIES Capical expenditures Proceeds from sales Aquin, et of cash oqired (3.34T) (3.717) (384) (158) (3.909) (16) (4.843) (4757 CEEFFETTIIIII122 (3.511) Proceeds from sales and maturities of shortsisvest Cash transferred closing related to the euty and diverse Change is ocher investments TOTAL INVESTING ACTIVITIES PINANCING ACTIVITIES Divided to shareholders ansehen Addition to long-term debe Radactice of gter be Treasury stock purchase Impact of stock poons and other TOTAL FINANCING ACTIVITIES EYECT OF EXCHANGE RATE CHANGES ON CASH CASH EQUTVALENTS AND RESTRICTED CAR CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF YEAR SUPPLEMENTAL DECLOSURE $ Cash payment for some res Diverse of Beauty business in exchange for shares of P&G stock and assumption of debt Assets squired through e-cash capital cases are immaterial for all periods. - Includes aty ext e nt of debt contref 5346 and 543 in 2018 and 2017 respectively (6,685) (236) 2,727 3,603 (4.931) (5,200) 2.473 (8,568) (29) 1000) 2599 $2.569 55,569 497 3.054 $ 529 2.810 5 3 518 ,714 11,360 4. What is the gross profit percent, and return on sales for 2019 and 2018? Show all calculations. (Chapter 4) 5. What audit opinion was expressed? Did the auditors say that the financial statements were accurate? If not, what do they say about the accuracy of the statements? (Chapter 6) REQUIRED: Answer questions #4 and #5 about P & G from the annual report. Be sure to review the helpful hints for writing papers on page 8 in the class booklet. The answers should be in memorandum format and show all calculations for question #4. For question #5, give a complete explanation about the opinion. The opinion is on page 31 in the annual report in the class booklet