financial reporting problem the procter gamble company p g the financial statements 1562403

Financial Reporting Problem

The Procter & Gamble Company (P&G)

The financial statements of P&G are presented in Appendix 5B. The company’s complete annual report, including the notes to the financial statements, can be accessed at the book’s companion website, www. wiley.com/college/kieso.

Instructions

Refer to these financial statements and the accompanying notes to answer the following questions.

(a) What were P&G’s total assets at June 30, 2011? At June 30, 2010?

(b) How much cash (and cash equivalents) did P&G have on June 30, 2011?

(c) What were P&G’s research and development costs in 2010? In 2011? (d) What were P&G’s revenues in 2010? In 2011?

(e) Using P&G’s financial statements and related notes, identify items that may result in adjusting entries for deferrals and accruals.

(f) What were the amounts of P&G’s depreciation and amortization expense in 2009, 2010, and 2011?