QUESTION 1 Not complete Points out of 7 00 Flag question Question text Analyzing and Interpreting Equity Accounts and Comprehensive Income Assume this is the shareholders' equity section of the 2008 balance sheet for Procter Gamble Company and its statement of shareholders' equity June 20 (In millions, except per share amounts) 2008 2007 Shareholders' Equity Convertible Class A preferred stock, stated value $ 1 per share (600 shares authorized) $ 1,366 $ 1,406 Non voting Class B preferred stock, stated value $ 1 per share (200 shares authorized) Common stock, stated value $ 1 per share (10,000 shares authorized shares issued 2008 4,001 8, 2007 3,989 7) 4,002 3,990 Additional paid in capital 60,087 58,810 Reserve for ESOP debt retirement (1,325) (1,308) Accumulated other comprehensive income 3,746 617 Treasure stock, at cost (shares held 2008 969 1, 2007 857 8) (47,588) (38,772) Retained earnings 48,844 41,797 Total shareholders' equity $ 69,132 $ 66,540 Consolidated Statement of Shareholders' Equity Dollars in millions Shares in thousands Common Shares Outstanding Common Stock Preferred Stock Additional Paid in Capital Reserve for ESOP Debt Retirement Accumu lated Other Comprehensive Income Treasury Stock Retained Earnings Total Balance June 30, 2007 3,131,946 $ 3,990 $ 1,406 $ 58,810 $ (1,308) $ 617 $ (38,772) $ 41,797 $ 66,540 Net earnings 12,075 12,075 Other comprehensive income Financial statement translation 6,543 6,543 Net investement hedges, net of $ 1,719 tax (2,951) (2,951) Other, net of tax benefits (463) (463) Total comprehensive income 15,204 Cumulative impact for adoption of FIN 48 (232) (232) Dividends to shareholders Common (4,619) (4,619) Preferred, net of tax benefits (178) (178) Treasury stock purchases (148,121) (10,047) (10,047) Employee plan issuances 43,910 12 1,272 1,196 2,480 Preferred stock conversions 4,922 (40) 5 35 ESOP debt impacts (17) 1 (16) Balance June 30, 2008 3,032,657 $ 4,002 $ 1,366 $ 60,087 $ (1,325) $ 3,746 $ (47,588) $ 48,844 $ 69,132 (a) What does the term convertible (in reference to the company's Class A preferred stock) mean Convertible means the holder of the security has an option to surrender the security and to receive cash at any time Convertible means the holder of the security has an option to sell the security at any time Convertible means the holder of the security has an obligation to convert (exchange) the security into another security Convertible means the holder of the security has an option to convert (exchange) the security into another security (b) How many shares of common stock did Procter Gamble issue when convertible Class A preferred stock was converted during fiscal 2008 Answer thousand shares (c) For employee plan issuances, at what average price was the common stock issued as of year end 2008 (Round your answer to two decimal places ) $ Answer (d) What is the accumulated other comprehensive income account Explain The accumulated other comprehensive income account reflects the cumulative profit on transactions with shareholders The accumulated other comprehensive income account reflects the cumulative amount by which the company's common stock has increased or decreased since issuance The accumulated other comprehensive income account reflects the cumulative profit recognized by the company less the cumulative dividends that have been paid to shareholders The accumulated other comprehensive income account reflects the cumulative change in balance sheet accounts not recorded in net income nor arising from transactions with shareholders (e) What cash dividends did Procter Gamble pay in 2008 for each class of stock common dividends Answer ($ millions) preferred dividends Answer ($ millions)

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QUESTION 1 Not complete Points out of 7.00 Flag question Question text Analyzing and Interpreting Equity Accounts and Comprehensive Income Assume this is the shareholders'

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Analyzing and Interpreting Equity Accounts and Comprehensive Income Assume this is the shareholders' equity section of the 2008 balance sheet for Procter & Gamble Company and its statement of shareholders' equity.

June 20 (In millions, except per share amounts)	2008	2007
Shareholders' Equity
Convertible Class A preferred stock, stated value $ 1 per share (600 shares authorized)	$ 1,366	$ 1,406
Non-voting Class B preferred stock, stated value $ 1 per share (200 shares authorized)	--	--
Common stock, stated value $ 1 per share (10,000 shares authorized; shares issued: 2008-4,001.8, 2007-3,989.7)	4,002	3,990
Additional paid-in capital	60,087	58,810
Reserve for ESOP debt retirement	(1,325)	(1,308)
Accumulated other comprehensive income	3,746	617
Treasure stock, at cost (shares held: 2008-969.1, 2007-857.8)	(47,588)	(38,772)
Retained earnings	48,844	41,797
Total shareholders' equity	$ 69,132	$ 66,540

Consolidated Statement of Shareholders' Equity
Dollars in millions; Shares in thousands	Common Shares Outstanding	Common Stock	Preferred Stock	Additional Paid-in Capital	Reserve for ESOP Debt Retirement	Accumu-lated Other Comprehensive Income	Treasury Stock	Retained Earnings	Total
Balance June 30, 2007	3,131,946	$ 3,990	$ 1,406	$ 58,810	$ (1,308)	$ 617	$ (38,772)	$ 41,797	$ 66,540
Net earnings								12,075	12,075
Other comprehensive income:
Financial statement translation						6,543			6,543
Net investement hedges, net of $ 1,719 tax						(2,951)			(2,951)
Other, net of tax benefits						(463)			(463)
Total comprehensive income									15,204
Cumulative impact for adoption of FIN 48								(232)	(232)
Dividends to shareholders:
Common								(4,619)	(4,619)
Preferred, net of tax benefits								(178)	(178)
Treasury stock purchases	(148,121)						(10,047)		(10,047)
Employee plan issuances	43,910	12		1,272			1,196		2,480
Preferred stock conversions	4,922		(40)	5			35		--
ESOP debt impacts					(17)			1	(16)
Balance June 30, 2008	3,032,657	$ 4,002	$ 1,366	$ 60,087	$ (1,325)	$ 3,746	$ (47,588)	$ 48,844	$ 69,132

(a) What does the term convertible (in reference to the company's Class A preferred stock) mean?

Convertible means the holder of the security has an option to surrender the security and to receive cash at any time.

Convertible means the holder of the security has an option to sell the security at any time.

Convertible means the holder of the security has an obligation to convert (exchange) the security into another security.

Convertible means the holder of the security has an option to convert (exchange) the security into another security.

(b) How many shares of common stock did Procter & Gamble issue when convertible Class A preferred stock was converted during fiscal 2008? Answerthousand shares (c) For "employee plan issuances," at what average price was the common stock issued as of year-end 2008? (Round your answer to two decimal places.) $Answer (d) What is the accumulated other comprehensive income account? Explain.

The accumulated other comprehensive income account reflects the cumulative profit on transactions with shareholders.

The accumulated other comprehensive income account reflects the cumulative amount by which the company's common stock has increased or decreased since issuance.

The accumulated other comprehensive income account reflects the cumulative profit recognized by the company less the cumulative dividends that have been paid to shareholders.

The accumulated other comprehensive income account reflects the cumulative change in balance sheet accounts not recorded in net income nor arising from transactions with shareholders.

(e) What cash dividends did Procter & Gamble pay in 2008 for each class of stock? common dividends =Answer($ millions) preferred dividends =Answer($ millions)