There are 4 questions required by this exercise (at the very bottom). Show your calculated ratios. Make sure you show the data used to calculate the ratios.

The Procter & Gamble Company

Consolidated Balance Sheets

Amounts in millions; As of June 30	2018		2017
Assets
CURRENT ASSETS
Cash and cash equivalents	$ 2,569		$ 5,569
Available-for-sale investment securities	9,281		9,568
Accounts receivable	4,686		4,594
INVENTORIES
Materials and supplies	1,335		1,308
Work in process	588		529
Finished goods	2,815		2,787
Total inventories	4,738		4,624
Prepaid expenses and other current assets	2,046		2,139
TOTAL CURRENT ASSETS	23,320		26,494
PROPERTY, PLANT AND EQUIPMENT, NET	20,600		19,893
GOODWILL	45,175		44,699
TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET	23,902		24,187
OTHER NONCURRENT ASSETS	5,313		5,133
TOTAL ASSETS	$ 118,310		$ 120,406
Liabilities and Sharesholders' Equity
CURRENT LIABILITIES
Accounts payable	$ 10,344		$ 9,632
Accrued and other liabilities	7,470		7,024
Debt due within one year	10,423		13,554
TOTAL CURRENT LIABILITIES	28,237		30,210
LONG-TERM DEBT	20,863		18,038
DEFERRED INCOME TAXES	6,163		8,126
OTHER NONCURRENT LIABILITIES	10,164		8,254
TOTAL LIABILITIES	65,427		64,628
SHAREHOLDERS' EQUITY
Convertible Class A preferred stock, stated value $1 per share (600 shares authorized)	967		1,006
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: 2018 - 4,009.2, 2017 - 4,009.2 )	4,009		4,009
Additional paid-in capital	63,846		63,641
Reserve for ESOP debt retirement	(1,204)		(1,249)
Accumulated other comprehensive income/(loss)	(14,749)		(14,632)
Treasury stock, at cost (shares held: 2018 -1,511.2, 2017 - 1,455.9)	(99,217)		(93,715)
Retained earnings	98,641		96,124
Noncontrolling interest	590		594
TOTAL SHAREHOLDERS' EQUITY	52,883		55,778
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 118,310		$ 120,406

The Procter & Gamble Company

Consolidated Statements of Earnings

Amounts in millions except per share amounts; Years ended June 30	2018		2017
NET SALES	$ 66,832		$ 65,058
Cost of products sold	34,268		32,535
Selling, general and administrative expense	18,853		18,568
OPERATING INCOME	13,711		13,955
Interest expense	506		465
Interest income	247		171
Other non-operating income/(expense), net	(126)		(404)
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	13,326		13,257
Income taxes on continuing operations	3,465		3,063
NET EARNINGS FROM CONTINUING OPERATIONS	9,861		10,194
NET EARNINGS FROM DISCONTINUED OPERATIONS			5,217
NET EARNINGS	9,861		15,411
Less: Net earnings attributable to noncontrolling interests	111		85
NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE	$ 9,750		$ 15,326
BASIC NET EARNINGS PER COMMON SHARE: (1)
Earnings from continuing operations	$ 3.75		$ 3.79
Earnings from discontinued operations			2.01
BASIC NET EARNINGS PER COMMON SHARE	$ 3.75		$ 5.80
DILUTED NET EARNINGS PER COMMON SHARE: (1)
Earnings from continuing operations	$ 3.67		$ 3.69
Earnings from discontinued operations			1.90
DILUTED NET EARNINGS PER COMMON SHARE	$ 3.67		$ 5.59
DIVIDENDS PER COMMON SHARE	$ 2.79		$ 2.70
Selected Ratios	2018-06		2017-06
Profitability
Net Margin %
Return on Assets %
Return on Equity %
Financial Health or Debt Management Ratios
Total Liabilities or Total Debt
Financial Leverage or Equity Multiplier
Debt/Equity
Interest Coverage
Liquidity Ratios
Current Ratio
Quick Ratio

1. Calculate the selected ratios shown for 2017 and 2018
2. Indicate whether the change in each ratio is a strength or weakness
3. Use the short DuPont equation below to indicate what drove the change on the return on assets from 2017 to 2018
Return on Assets = Net Margin X Total Asset Turnover
4. Use the long DuPont equation below to indicate what drove the change on the return on assets from 2017 to 2018
Return on Equity = Return on Assets X Equity Multiplier