• Procter & Gamble Co. invested $3 billion in a sustainability initiative aimed at reducing its environmental footprint. The company provided the following financial information:
  • Investment in Sustainability Initiative: $3 billion
  • Total Assets: $120 billion
  • Total Liabilities: $60 billion
  • Net Income: $15 billion

• Requirements:
  1. Calculate Procter & Gamble’s total assets after accounting for the investment in the sustainability initiative.
  2. Prepare a balance sheet reflecting the investment in the sustainability initiative and adjusted total assets.
  3. Analyze the impact of the investment on Procter & Gamble’s financial leverage.
  4. Discuss the accounting treatment of investments in sustainability initiatives in Procter & Gamble’s financial statements.
  5. Evaluate the potential return on investment from Procter & Gamble’s sustainability initiative.