The Procter & Gamble Company (P&G) Pg.145

Questions for letter e

(a) What were P&G's total assets at June 30,2014? At June 30,2013? P&Gs total assets at June 30,2014 were $144,266 million and at June 30, 2013 total assets were $139,263 million.

(b) How much cash (and cash equivalents) did P&G have on June 30,2014? On June 30,2014, P&G had $8,558 million on cash (and cash equivalents).

(c) What were P&Gs research and development costs in 2013? In 2014? P&Gs research and development costs in 2014 was $2,023 million, and in 2013 was $1,980 million.

(d) What were P&Gs revenues in 2013? In 2014? P&Gs revenue in 2014 was $83,062 million, and revenue for 2013 was $82,581 million.

(e) Using P&Gs financial statements and related notes, identify items that may result in adjusting entries or deferrals and accruals. Adjusting entries are prepared prior to the preparation of financial statements for two reasons: to achieve a proper recognition of revenues and expenses in measuring income and to achieve an accurate presentation of assets, liabilities and stockholders' equity. An accrual occurs before a payment or receipt. A deferral occurs after a payment or receipt. There are accruals and deferrals for expenses and for revenues.

(f) What were the amounts of P&Gs depreciation and authorization expense in 2012, 2013, and 2014? The amount for P&Gs depreciation & amortization expense for 2014 was $3,141 million, for 2013 was $2,982 million, and for 2012 was $3,204 million.