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Interpreting Foreign Currency Translation Disclosure Procter & Gamble reports the following table in its 1 0 - K relating to the change in sales during
Interpreting Foreign Currency Translation Disclosure
Procter & Gamble reports the following table in its K relating to the change in sales during a recent fiscal year.
Net Sales Change Drivers Volume Foreign Exchange Price Mix Net Sales Growth
Beauty
Grooming
Healthcare
Fabric & home care
Baby, feminine & family care
Total company
a Did total company net sales increase or decrease during the year? By what percentage? How much of this change is attributable to volume versus price changes?
Total company sales Answer
by Answer
during the fiscal year. While prices Answer
by an average of Answer
volume Answer
by an average of Answer
b What was the effect of foreign exchange rates on sales during the year? From this result, what can we infer about the relative strength of the $US during the period?
Foreign exchange rate differences during the year caused sales to be Answer
in all segments with an average effect of Answer
for the year. The average Answer
impact leads us to conclude that the US dollar Answer
during the year visvis the currencies in which P&G does business.
c Both the Grooming segment and the Baby, Feminine & Family Care segment reported that sales decreased by From this result, can we conclude that the dollar decrease in sales was the same for both segments?
Answer
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