The financial statements of P&G are presented in Appendix B. The companys complete annual report, including the notes to the financial statements, is available online.

Instructions Refer to P&Gs financial statements and the accompanying notes to answer the following questions.

a. What criteria does P&G use to classify Cash and cash equivalents as reported in its balance sheet?

b. As of June 30, 2017, what balances did P&G have in cash and cash equivalents? What were the major uses of cash during the year?

c. P&G reports no allowance for doubtful accounts, suggesting that bad debt expense is not material for this company. Is it reasonable that a company like P&G would not have material bad debt expense? Explain.