ACC 302 Project
a) P& G reported intangibles including goodwill, brands, patents and technology, and customer relations on their 2009 monetary statements and notes. b) Research and development costs were expensed in 2009 intended for $2, 044 and in 2008 for $2, 212. R& D costs were 2 . 6% (2, 044/79, 029) of revenue revenue last season and installment payments on your 7% (2, 212/81, 748) in 08. In 2009 the R& M costs had been 15% (2, 044/13, 436) of net income and 18 %( 2, 212/12, 075) in 2008. (in millions) Ch. 13
a) P& G's short-run debt last season was $16, 320 as well as the weighted common interest rate was 2 . 0%. b) Last season, P& G had $8, 996 , 000, 000 (21, 905 – 35, 901) in working capital; their very own acid- evaluation ratio was. 34 instances ((4, 781+5, 836)/30, 901); and the current ratio was. 71 times (21, 905/30, 901). Depending on the proportions above, P& G's fluidity is very poor. The acid-test and current ratios are both below a 1, indicating that they may have current possessions tied up. They might not accomplish that well in the case of an overall economy and are much less liquid as they should be. c) P& G has reported purchase obligations for elements, supplies, services, and home, plant, and equipment; leasing commitments intended for leases; along with contingencies for legal process and claims on their monetary statements. Management's reaction to the contingencies is usually that the results is not going to materially impact P& G's financial position (although there is even now uncertainty). Ch. 14
a) P& G has funds outflow commitments over the up coming 5 years for their purchase contracts and rental responsibilities. b) The financial overall flexibility of P& G can be as follows: your debt to total possessions ratio can be 53% (71, 734/134, 833) which is slightly high. P& G may possibly have some problems in the long run with repaying their very own maturing financial debt. The times curiosity earned is usually 13. on the lookout for times ((1, 358+13, 436+4, 032)/1, 358), which says that P& G earns their fascination approximately 13 times 12 months, so they must be just fine to make interest payments. Overall, Proctor and Gamble should certainly work on the...