Question

The following table contains financial statement information for The Procter & Gamble Company ($ millions) for the fiscal years ended in June of each year:

Year	Assets	Liabilities	Equity	Net Income
2016	$127,136	$69,153	$ ?	$10,508
2017	?	64,628	54,178	15,326
2018	118,310	?	51,326	9,750

Required
a. Compute the missing amounts for assets, liabilities, and equity for each year.

b. Compute return on equity for 2017 and 2018. (Round your answer to one decimal place.

c. Compute the debt-to-equity ratio for 2017 and 2018. (Round your answer to one decimal place.)

Answer 1

Answer -

44 answers

(A) computation of asset, liability and equity for each year

year2016 :-

asset= liability+equity

127136=69153+equity

equity=57983

year2017 :-

asset=liability+equity

asset=64628+54178

=118,806

year2018 :-

asset=liability+equity

118310=liabilty+51326

liability=66984

(B)RETURN ON EQUITY

FOR YEAR 2017 :-

ROE= net income/shareholder equity

=15,326/54178

=28.3%

RETURN ON EQUITY FOR YEAR2018 :-

=9750/51326

=18.99%

(C) DEBT TO EQUITY RATIO

FOR YEAR2017 :-

=debt/equity

=64628/54178

=1.2

FOR YEAR2018 :-

=66984/51326

=1.30

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