CAL al\'AIOR FULLSCREEN PRINTERVERSON «BACK Financial Reporting Problem The fina

Question

CAL al'AIOR FULLSCREEN PRINTERVERSON «BACK Financial Reporting Problem The financial statements of P&G are presented in Appendix B. The company's complete annual report, including the notes to the financial statements, is available online. Refer to P&G's financial statements an Which method of computing net cash provided by operating activities does P&G use? d the accompanying notes to answer the following questions. Direct method LINK TO TEXI LINK TO TEXI What were the amounts of net cash provided by operating activities for the years 2012, 2013, and 20147 (Enter your answers in millions.) 2012 2013 2014 Net Cash Provided by Operating Activities million million million

Explanation / Answer

(a) Which method of computing net cash provided by operating activities does P&G use?
Under Note 1 for Cash Flow Presentation, P&G uses the indirect method. This method adjusts net income for items that affected reported net income but did not affect cash.

(b)What were the amounts of net cash provided by operating activities for the years 2012, 2013, and 2014?
On page 51 under
Consolidated Statements of Cash Flow P&G reports $13,958m in 2014, $14,873m in 2013, and $13,284m in 2012.

(c) What was the most significant item in the cash flows used for investing activities section in 2014?
The most significant item in the cash flows for investing activities is capital expenditures-$3848 mn

(d)What was the most significant item in the cash flows used for financing activities section in 2014?
The most significant item in the cash flows used for financing activities is Payments of dividends to shareholders-$6911mn

(e) Where is “deferred income taxes” reported in P&G’s statement of cash flows?
The “deferred income taxes” is reported under Operating Activities and shows $44m.

(f) Where is depreciation reported in P&G’s statement of cash flows?
Depreciation is reported under Operating ACtivities.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.