udy 6-34 Saved Help Save & E b. Calculate the ratio of the depreciation and amortization expense for 2017 reported in the Consolidated Statements of Cash Flows, Supplemental Financial Statement Data to the total cost (not net book value) of property, plant, and equipment reported in the schedule. (Round your percentage answer to 1 decimal place. (eg 32.6)) Ratio % c. Based on the ratio calculated in part b and the depreciation method being used by Campbell's, what is the average useful life being used for its depreciation calculation? (Round your answer to 1 decimal place.) es Average useful life years d. Assume that the use of an accelerated depreciation method for 2017 would have resulted in 25% more depreciation and amortization than reported by Campbell's at July 30, 2017. By what percentage would this have reduced the retained earnings amount reported at July 30, 2017? (Round your percentage answer to 1 decimal place. (eg 32.6)) Reduction in retained earnings % CAMPBELL SOUP COMPANY Consolidated Statements al Cash Flows (millions) 2017 2016 2015 $ 887 $ 563 $ 666 141 212 18 60 31 64 6 102 $7 118 303 317 (258) 318 308 93 18 (30) 6 (49) 15 28 24 12 16 59 (18) 10 9 (27) (18) (5) 15 30 (5) (2) 2 (53) 1,291 (58) 1,491 (52) 1 206 Cash flows from operating activities: Net earnings Adjustments to reconcile net eamings to operating cash flow Impairment charges Restructuring charges Stock-based compensation Pension and postretirement benefit expense (income) Depreciation and amortization Deferred income taxes Othernet Changes in working capital, net of acquisitions Accounts receivable Inventories Prepaid assets Accounts payable and accrued liabilities Pension fund contributions Net receipts from hedging activities Other Net cash provided by operating activities Cash flows from investing activities: Purchases of plant assets Sales of plant assets Business acquired net of cash acquired Other, net Net cash used in investing activities Cash flows from financing activities: Net short-term borrowings (repayments). Long-term borrowings Long-term repayments Repayments of notes payable. Dividends paid Treasury stock purchases Treasury stock issuances Contributions from noncontrolling interest Payments related to tax withholding for stock-based compensation Other, net Net cash used in financing activities Effect of exchange rate changes on cash Net change in cash and cash equivalents Cash and cash equivalents - beginning of period Cash and cash equivalents - end of period (338) (341) 5 (380) 15 (232) (6) (603) (30) (368) (18) (354) 245 (762) 215 100 300 211 (90) (400) (420) (437) 2 (390) (309) (394) (244) (143) 9 (22) (21) (9119 (1.099) 5 11 (18) ) (550) (32) 21 232 253 43 23 296 319 253 296 $ S S See accompanying Notes to Consolidated Financial Statements. Balance Sheets S 520 Accounts receivable Customer accounts receivable Allowances Subtotal Oder 5ols (11) S 554 005 S 626 Inventones Raw matenals, containers and supplies Finished products 391 $49 940 S 902 S Other current assets Fair value of derivatives Other S S 65 1 $ 1 40 1.553 1.4848 Plant assets Land Buildings Machinery and equipment Projects m progress Total cost Accumulated depreciation 195 $ 1,042 176 5.764 (3.357) 2.407 6.043-5 (3,599) 2.4545 , S 09 $ 47 Other assets Investments Dclcited taxes Other 36 $ $ $ $ 13 15 Accred liabilites Accrued compensation and benefits Fair value of derivatives Accrued trade and consumer promotion prograns Accued interest Restructuning 131 561 S 604 2615 90 100 285 Other liabilities Pension benefits Deferred compensation(A) Postretirement benefits Fair value of derivatives Unrecognized tax benefits Restructuring Other 31 01 50 697 1.039 Depreciation expense was $299 in 2017. $288 in 2016 and 8286 in 2015 Buildings are depreciated over peneda naging from 7 to 45 years. Machinery and equipment are depreciated over periods generally ranging from to 20 years The deferred compensation obligation represents unfunded plans maintained for the purpose of providing our directors and certain of our executives the opportunity to defer a portion of their compensation All forms of compensation coutbuted to the deferred compensation plans are accounted for in accordance with the underlying program Deferrals and our contbations are credited to an investment account in the participant's name, although no funds are actually contbuted to the avestment account and no investments are actually purchased Seven investment choices are available, including a book account that track the total return on our stock (2) a book account that tracks the performance of the Vanguard Institutional Index 3) book account that tracks the performance of the Vanguard Extended Market Index () a book account that tracks the performance of the Vanguard Total International Stock Index: (5) a book account that tracks the performance of the Vaguard Total Bond Market Index. () a book account that tracks the performance of the Vanguard Short-Term Bond Index; and (7) a book account that tracks the Black Rock Short-Term Investment Fund Participants can reallocate investments daily and are entitled to the gains and losses on investment funds. We recognize an amount in the Consolidated Statements of Earnings for the market appreciation depreciation of each fund. CNNIERELL SOUP COMPANY Consolidated Statemente cu Earnings million except per amount 2017 7.800 $ 2016 79615 S 8.082 S.300 831 $17 488 5.181 893 884 601 641 124 98 131 19 6.490 51 71001 950 115 102 7.028 1.084 108 1.400 3 Nel sales cond expenses Cost of products sold | Marketing and selling expenses Administrative expenses Research and development expenses Other expenses (income)... Restructuras charges TOT costs and expenses Earnings before interest and taxes Interest expense Interest income Earrings before taxes Taxes on camnings Net earnings Less: Net cumings (los) arbutable to sencontrolling intereses Narnings attributable to Campbell Soup Company Per Share - Basic Net earnings attributable to Campbell Soup Company Weighted average shares outstanding - basic Per Share - Asuming Daution Net earnings attributable to Campbell Soup Company Weighted average shares outstanding assuming dilution B 1.293 9 286 100 SS7 9.49 183 666 $ $$$ $63$ S 2191 $ 18$ 309 305 IS 159 $ 131 S 3:07 311 Se accompanying Notes to Consolidated Financial Statements , CAMPBELL SOUP COMPANY Cenyelidated Balance Sheets (millions except per share amounts) lek. 06 $ 3195 003 1.900 2.434 2,115 1.118 1 908 2107 2263 1.152 107 7.1265 1219 666 Current assets Cash and cash equivalents Accounts receivable, net Inventong the current assets Total current assets Piant assets, net of depreciation Goodwill Other intangible assets, set of an ortization Other assets ($51 as of 2017 and $34 as of 2016 attributable to variable interest entry) Total assets Ourrent abilities Short-term borrowings Payable to wippliers and others Accrued liabilities Dividends payable Accued income taxes Total current liabilities Long-term debe Deferred taxes Other liabilities Total liabilities Commitments and contingencies Carpbell Soup Compauy sharebolders' equity Preferred stock, authonzed 40 shares none issued Capital stock. $.0375 par value authonzed 560 shares, issued 323 shares Additional paid in capital Esmingu retained in the business Capital stock in treasury. at cost Accumulated other comprehensive loss Total Canapbell Soup Coupany shareholders equity Noncontrolling interest Total equity Tota abilities and equit SSS 20 195 2.499 490 599 298 1.039 630- 6.081 FT 139 2.83 01.060) 1927 06-3) 10 SUSHI 1007 S 1.845 ES 8 13 7,837 See accompanyug Notes to Consolidated Emancial Statements