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:

(a)Refer to P&Gs financial statements and the accompanying notes to answer the following questions.

What is the par or stated value of P&Gs preferred stock?

P&G's preferred stock has a par/stated value of $... per share.

Appendix B Specimen Financial Statements: The Procter & Gamble Company Once each year, a corporation communicates to its stockholders and other interested parties by issuing a complete set of audited financial statements. The annual report, as this communication is called, summarizes the financial results of the company's operations for the year and its plans for the future. Many annual reports are attractive, multicolored, glossy public relations pieces, containing pictures of corporate officers and directors as well as photos and descriptions of new products and new buildings. Yet the basic function of every annual report is to report financial information, almost all of which is a product of the corporation's accounting system. The content and organization of corporate annual reports have become fairly standardized. Excluding the public relations part of the report (pictures, products, etc.), the following are the traditional financial portions of the annual report: Financial Highlights Letter to the Stockholders Management's Discussion and Analysis Financial Statements Notes to the Financial Statements Management's Responsibility for Financial Reporting Management's Report on Internal Control over Financial Reporting Report of Independent Registered Public Accounting Firm Selected Financial Data The official SEC filing of the annual report is called a Form 10-K, which often omits the public relations pieces found in most standard annual reports. On the following pages, we present The Procter & Gamble Company (P&G)'s financial statements taken from the company's 2017 Form 10-K. Consolidated Statements of Earnings 2017 2016 2015 Amounts in millions except per share amounts; Years ended June 30 $ 65,058 $ 65.299 $ 70.749 NET SALES Think About 2016 2017 $ 65,058 32,535 18,568 $ 65.299 32.909 18.949 2015 $ 70.749 37.056 20,616 2,028 11.049 626 Consolidated Statements of Earnings Amounts in millions except per share amounts; Years ended June 30 NET SALES Cost of products sold Selling, general and administrative expense Venezuela deconsolidation charge OPERATING INCOME Interest expense Interest income Other non-operating income/(expense), net EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Income taxes on continuing operations NET EARNINGS FROM CONTINUING OPERATIONS NET EARNINGS/(LOSS) FROM DISCONTINUED OPERATIONS NET EARNINGS Less: Net earnings attributable to noncontrolling interests NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE BASIC NET EARNINGS PER COMMON SHARE: Earnings from continuing operations Earnings/(loss) from discontinued operations BASIC NET EARNINGS PER COMMON SHARE DILUTED NET EARNINGS PER COMMON SHARE:0 Earnings from continuing operations 13.955 465 171 (404) 13,257 3,063 10,194 5,217 15,411 85 $ 15-326 13.441 579 182 325 13.369 3.342 10,027 572 10.604 96 149 440 11.012 2.725 8.287 (1.143) 74144 108 7,036 $ 10,508 $ $ S $ 3.79 2.01 5.80 3.59 0.21 2.92 (0-42) 2.50 $ $ 3.80 $ 3.69 $ 3-49 $ 2.84 801 PM 2 charities o Think About It Disc Earnings from continuing operations $ Earnings/(loss) from discontinued operations 3.69 1.90 DILUTED NET EARNINGS PER COMMON SHARE $ 5.59 DIVIDENDS PER COMMON SHARE $ 2.70 Basic net earnings per common share and Diluted net earnings per common share are calculated on Net earnings attributable to Procter & Gamble. $ $ 3.49 0.20 3.69 2.66 2.84 (0.40) 2.44 2.59 $ $ $ $ 2017 $ 15,411 2016 $ 10,604 2015 $ 7.144 Consolidated Statements of Comprehensive Income Amounts in millions; Years ended June 30 NET EARNINGS OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX Financial statement translation Unrealized gains/(losses) on hedges (net of $(186). $5 and $739 tax, respectively) Unrealized gains/Closses) on investment securities (net of $(6). $7 and so tax, respectively) Unrealized gains/(losses) on defined benefit retirement plans (net of $551, $(621) and $328 tax, respectively) TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX TOTAL COMPREHENSIVE INCOME Less: Total comprehensive income attributable to noncontrolling interests TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO PROCTER & GAMBLE 239 (306) (59) 1,401 1,275 16,686 85 $ 16,601 (1.679) 1 28 (1.477) (3.127) 7.477 96 $ 7.381 (7.220) 1,234 24 844 (5.118) 2,026 108 $ 1.918 Consolidated Balance Sheets Amounts in millions; As of June 30 Assets 2017 2016 3 Think About It Disc 2017 2016 $ 5.569 9,568 4.594 7.102 6,246 4.373 Consolidated Balance Sheets Amounts in millions; As of June 30 Assets CURRENT ASSETS Cash and cash equivalents Available-for-sale investment securities Accounts receivable INVENTORIES Materials and supplies Work in process Finished goods Total inventoreis Deferred income taxes Prepaid expenses and other current assets Current assets held for sale COTAL CURRENT ASSETS PROPERTY, PLANT AND EQUIPMENT, NET GOODWILL RADEMARKS AND OTHER INTANGIBLE ASSETS, NET THER NONCURRENT ASSETS OTAL ASSETS 1,308 529 2,787 4.624 2,139 1,188 563 2,965 4.716 1,507 2,653 7.185 33.782 19,385 44.350 24.527 5.092 26,494 19,893 44,699 24,187 5,133 $ 120,406 abilities and Shareholders' Equity CURRENT LIABILITIES $ 127,136 $ 9,632 7.024 Liabilities and Shareholders' Equity CURRENT LIABILITIES Accounts payable Accrued and other liabilities Current liabilities held for sale Debt due within one year TOTAL CURRENT LIABILITIES LONG-TERM DEBT DEFERRED INCOME TAXES OTHER NONCURRENT LIABILITIES TOTAL LIABILITIES SHAREHOLDERS' EQUITY Convertible Class A preferred stock, stated value $1 per share (600 shares authorized) 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: 2017 - 4,009,2, 2016 - 4,009.2) Additional paid-in capital Reserve for ESOP debt retirement Accumulated other comprehensive income/(loss) Treasury stock, at cost (shares held: 2017 - 1.455.9.2016 - 1,341.2) Retained earnings Noncontrolling interest TOTAL SHAREHOLDERS' EQUITY OTAL LIABILITIES AND SHAREHOLDERS' EQUITY 13.554 30,210 18,038 8,126 8,254 64,628 9.325 7.449 2.343 11,653 30.770 18,945 9,113 10.325 69.153 1,006 1,038 4,009 63,641 (1,249) (14,632) (93,715) 96,124 594 55,778 $ 120,406 4,009 63.714 (1,290) (15.907) (82,176) 87.953 642 57.983 $ 127,136 Type here to search M Consolidated Statements of Shareholders' Equity Accumulated Other Total Common Additional Reserve for Comprehensive Non- Share- Dollars in millions: Shares Common Preferred Paid In ESOP Debt Income/ Treasury Retained controlling holders' Shares in thousands Outstanding Stock Stock Capital Retirement (Loss) Stock Earnings Interest Equity BALANCE JUNE 30, 2014 2,710,806 $4,009 $1,111 $63.911 ($1:340) ($7,662) ($75.805) $84,990 $762 $69.976 Net earnings 7,036 108 7.144 Other comprehensive loss (5.118) (5.118) Dividends to shareholders: Common 6.028) (7,028) Preferred, net of tax benefits Treasury purchases (259) (259) (54,670) (4.604) Employee plan issuances (4,604) 54.100 156 3.153 Preferred stock conversions 4335 3.309 (34) 30 ESOP debt impacts 20 68 Noncontrolling interest, net 88 (219) BALANCE JUNE 30, 2015 2.214.571 $4,009 $1,07 $63.852 (239) ($1,320 (458) ($12.780 ($77,226) $8.4.807 Net earnings S631 S63.050 Other comprehensive loss 10.508 96 10,604 Dividends to shareholders: (3.127) (3.127) Common Preferred, net of tax benefits (7.181) (7.181) Treasury purchases (103449) (255) (255) Type here to search (8,217) (8.217) 76% 3:03 PM 3/6/2021 O . Think About Us (255) (8,217) 3.090 104 (85) (85) $642 $57.983 85 15,411 1,275 Preferred, net of tax benefits (255) Treasury purchases (103.449) (8,217) Employee plan issuances 52,089 (144) 3.234 Preferred stock conversions 4.863 (39) 6 33 ESOP debt impacts 30 74 Noncontrolling interest, net BALANCE JUNE 30, 2016 2,668,074 $4.000 $1,038 $63714 ($1.290 ($15.907) ($82,176) $87.953_ Net earnings 15,326 Other comprehensive loss 1,275 Dividends to shareholders: Common Preferred, net of tax benefits Treasury purchases (2) (164,866) (14,625) Employee plan issuances 45,848 (77) Preferred stock conversions 3,058 4,241 (32) ESOP debt impacts 28 41 Noncontrolling interest, net 8: BALANCE JUNE 30, 2017 2,553,297 $4,009 $1,006 $63,641 ($1,249) ($14,632) ($93.715) $96,124 Includes $4,213 of treasury shares acquired in the divestiture of the Batteries business (see Note 13). () Includes $9.421 of treasury shares received as part of the share exchange in the Beauty Brands transaction (see Note 13). See accompanying Notes to Consolidated Financial Statements, (6,989) (247) (6,989) (247) (14,625) 2,981 122 (133) (133) $594 $55,778 onsolidated Statements of Cash Flows Type here to search solidated Statements of Cash Flows 2017 $ 7,102 2016 2015 $ 6,836 $ 8.548 10,604 3,078 7.144 3.134 15.411 2,820 543 351 (601) (5,490) 335 (815) (41) Amounts in millions: Years ended June 30 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR OPERATING ACTIVITIES 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 TOTAL OPERATING ACTIVITIES INVESTING ACTIVITIES Capital expenditures Proceeds from asset sales Cash related to deconsolidated Venezuela operations Acquisitions, net of cash acquired Purchases of short-term investments Type here to search 450 35 116 337 (803) (766) 2.028 2,174 349 313 928 (976) (322) 71 (149) (43) 162 12.753 1.285 204 184 246 14,608 (3384) 571 (3.314) 432 (3.736) 4.498 (908) (137) (3.647) (16) (4.843) (186) (2.815) 75% 1,203 1.354 (996) 1.488 (874) (475) 1,870 (26) (5.689) (143) 93 (5.575) (163) (2.890) 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 TOTAL INVESTING ACTIVITIES FINANCING ACTIVITIES Dividends to shareholders Change in short-term debt Additions to long-term debt Reductions of long-term debt Treasury stock purchases Treasury stock from cash infused in Batteries divestiture Impact of stock options and other TOTAL FINANCING ACTIVITIES EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS CHANGE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, END OF YEAR SUPPLEMENTAL DISCLOSURE Cash payments for interest Cash payment for income taxes Divestiture of Batteries business in exchance for shares of P&G stock(2) Type here to search (7.236) 2,727 3,603 (4.931) (5,204) (7,436) (418) 3,916 (2,213) (4,004) (1.730) 2,672 (9,213) (7.287) (2,580) 2.138 (3.512) (4.604) 2,473 (8.568) 2,826 (13.019) (29) (1.533) $ 5.569 (381) (411) 266 (1.712) $ 7,102 $ 6,836 $ 518 3.714 678 569 $ 3.730 4.213 4,558 LIVE Dividends to shareholders (7,236) (7,436) (7.287) Change in short-term debt 2,727 (418) (2,580) Additions to long-term debt 3,603 3,916 2,138 Reductions of long-term debt (4,931)() (2.213) (3.512) Treasury stock purchases (5,204) (4,004) (4,604) Treasury stock from cash infused in Batteries divestiture (1,730) Impact of stock options and other 2.473 2.672 2.826 TOTAL FINANCING ACTIVITIES (8.568) (9,213) (13,019) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (29) CHANGE IN CASH AND CASH EQUIVALENTS (381) (411) (1.533) 266 (1.712) CASH AND CASH EQUIVALENTS, END OF YEAR $ 5,569 $ 7.102 $ 6,836 SUPPLEMENTAL DISCLOSURE Cash payments for interest $ Cash payment for income taxes 569 $ Divestiture of Batteries business in exchange for shares of P&G stock2) 3,714 3,730 4.558 Divestiture of Beauty business in exchange for shares of P&G stock and assumption of debt 4,213 Assets acquired through non-cash capital leases are immaterial for all periods. 11,360 Includes $543 of costs related to early extinguishment of debt. (2) Includes $1.730 from cash infused into the Batteries business pursuant to the divestiture agreement (see Note 13). See accompanying Notes to Consolidated Financial Statements. 518 678