The Procter & Gamble Company (P&G) The financial statements of P&G are presented in Appendix B. The company's complete annual report, including the notes to the financial statements, is available online.

http://www.pginvestor.com/interactive/lookandfeel/4004124/PG_2014_10K.pdf

Refer to P&G's financial statements and the related information in the annual report to answer the following questions.

(a) Examining each item in P&G's balance sheet, identify those items that require present value, discounting, or interest computations in establishing the amount reported. (The accompanying notes are an additional source for this information.)

(b) (1) What interest rates are disclosed by P&G as being used to compute interest and present values? (2) Why are there so many different interest rates applied to P&G's financial statement elements (assets, liabilities, revenues, and expenses)?

The Proeser & Gamble Company 47 $ 83,062 $ 82581 82006 42,460 41.391 Selling, geteral and admitisaaive expense Goodwill and indeie-lived intuegible asset impairmem chaeges EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Income taxes on continuing operations NET EARNINGS FROM CONTINUING OPERATIONS NET EARNINGS FROMDISCONTINUED OPERATIONS 1402 NET EARNINGS ATTRIBUTABLE TO PROCTER& GAMBLE $ 11,643 11312 10,756 BASIC NET EARNINGS PER COMMON SHARE BASIC NET EARNINGS PER COMMON SHARE DILUTED NET EARNINGS PER COMMON SHARE 5 3.98 383 306 DILUTED NET EARNINGS PER COMMON SHARE DIVIDENDS PER COMMON SHARE $ 2.45 $ Basic net earings per common share and diluted net earnings per common share are calculated on net earmings attributable to Procter& Gamble The Proeser & Gamble Company 47 $ 83,062 $ 82581 82006 42,460 41.391 Selling, geteral and admitisaaive expense Goodwill and indeie-lived intuegible asset impairmem chaeges EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Income taxes on continuing operations NET EARNINGS FROM CONTINUING OPERATIONS NET EARNINGS FROMDISCONTINUED OPERATIONS 1402 NET EARNINGS ATTRIBUTABLE TO PROCTER& GAMBLE $ 11,643 11312 10,756 BASIC NET EARNINGS PER COMMON SHARE BASIC NET EARNINGS PER COMMON SHARE DILUTED NET EARNINGS PER COMMON SHARE 5 3.98 383 306 DILUTED NET EARNINGS PER COMMON SHARE DIVIDENDS PER COMMON SHARE $ 2.45 $ Basic net earings per common share and diluted net earnings per common share are calculated on net earmings attributable to Procter& Gamble