QUESTION 7. Continued.

The SCF on the preceding page is from Procter & Gambles 2017 10K.

7-1. In what life stage do you think P&G is, based on its SCF? WHY???

7-2. The change in inventories for 2017 was an increase or decrease? Explain why it was added or subtracted from net income.

7-3. The change in A/P for 2017 was an increase or decrease? Explain why it was added or subtracted from net income.

7-4. How much was the book value of assets sold?

7-5. 2017 Sales on P&Gs income statement was $65,058 (in millions). How much cash did they collect from customers?

7-6. Why is the change in short-term debt reported in the Financing section and not the Operating section? Are there any short-term loans that would be reported in operating? If so, what?

Consolidated Statements of Cash Flows ars ended June 2017 2016 2015 mounts in millions CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR OPERATING ACTIVITIES S 7,102S 6,836 8,548 10,604 3,078 Net earnings Depreciation and amortization Loss on early extinguishment of debt Share-based compensation expense Deferred income taxes Gain on sale of assets Venezuela deconsolidation charge Goodwill and intangible asset impairment charges Change in accounts receivable Change in inventories Change in accounts payable, accrued and other liabilities Change in other operating assets and liabilities Other 15,411 2,820 543 351 7,144 3,134 (803) (766) 2,028 2,174 349 313 928 (976) 746 14,608 (5,490) 450 35 116 1,285 204 184 15,435 (322) 71 (43) 162 12,753 TOTAL OPERATING ACTIVITIES INVESTING ACTIVITIES (3,384) 571 Capital expenditures Proceeds from asset sales Cash related to deconsolidated Venezuela operations Acquisitions, net of cash acquired Purchases of short-term investments Proceeds from sales and maturities of short-term investments Pre-divestiture addition of restricted cash related to the Beauty Brands divestiture Cash transferred at closing related to the Beauty Brands divestiture Release of restricted cash upon closing of the Beauty Brands divestiture Cash transferred in Batteries divestiture Change in other investments (3,736) 4,498 (908) (137) 3,647) 1,203 (3,314) (16) (4,843) 1,488 (874) (475) .870 (186) (2,815) 1,354 (996) (26) 93 (163)