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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 10-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 4%4%-10%18%
Grooming -6%-6%-2%-2%
Healthcare 6%6%-2%-10%
Fabric & home care 6%2%-2%-6%
Baby, feminine & family care -2%2%-2%--2%
Total company 2%4%-2%2%6%
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 1
by Answer 2
% during the fiscal year. While prices Answer 3
by an average of Answer 4
%, volume Answer 5
by an average of Answer 6
%.
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 7
in all segments with an average effect of Answer 8
% for the year. The average Answer 9
impact leads us to conclude that the U.S. dollar Answer 10
during the year vis--vis 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 2%. From this result, can we conclude that the dollar decrease in sales was the same for both segments?
Answer 11

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