Interpreting Foreign Translation Disclosure Procter & Gamble Company reports the following table in its 10-K report relating to the change in sales from 2017 to 2018. Net Sales Change Drivers 2018 vs. 2017 Foreign Net Sales Volume Exchange Price Mix Growth Beauty 2% 2% 5% 9% Grooming 3% (3)% (1)% (1) % Health care 3% 3% (1)% 5% Fabric & home care 3% 1% (1)% 3% Baby, feminine & family care (1)% 1% (1)% (1)% Total company 1% 2% (1)% 1% 3% a. Did total company net sales increase or decrease during the year? By what percentage did net sales increase or decrease)? Do not use a negative sign with your answer to indicate a decrease. % b. What was the effect of foreign exchange rates on sales during the year? Foreign exchange rates caused sales to by %. From this result, what can we infer about the relative strength of the $US during the period? During the year, Othe U.S. dollar strengthened vis--vis the currencies in which P&G does business. Othe U.S. dollar weakened vis--vis the currencies in which P&G does business. c. The Grooming and the Baby, Feminine & Family Care segment sales both decreased by 1%. From this result, can we conclude that the dollar decrease in sales was the same for both segments? OYes, since both segments' sales decreased by the same percentage, the dollar amounts in sales were the same. ONo, the decrease is relative to each segment's sales. Both segments could have different sales levels but the same percentage change. |