Question

The following information is taken from Procter & Gamble's 2012 annual report: (in millions) 2012 2011...

The following information is taken from Procter & Gamble's 2012 annual report:

(in millions) 2012 2011 2010
Income statement
Net sales $84,680 $82,104 $78,567
Net earnings 10,756 11,797 12,736
Balance sheet
Shareholders' equity 64,439 68,640
Statement of cash flow
Dividends to shareholders 6,139 5,767

5,458

Calculate the company's actual and sustainable rate of growth in sales for 2012 and 2013

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

(in millions)

2012

2011

2010

Income statement

Net sales

$84,680

$82,104

$78,567

Net earnings

10,756

11,797

12,736

Balance sheet

Shareholders' equity

64,439

68,640

Statement of cash flow

Dividends to shareholders

6,139

5,767

5,458

ROE = net income/shareholders equity

16.69%

17.19%

Dividend payout ratio = dividend paid/net income

0.57

0.49

sustainable growth rate = ROE*(1-dividend payout ratio)

7.16%

8.78%

Actual growth rate in sales = (current Year sale/previous year sale)*100

3.14%

4.50%
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The following numbers were calculated from the financial statements for a firm for 2012 and 2011...
The following numbers were calculated from the financial statements for a firm for 2012 and 2011 2012 2011 Return on common equity (ROCE 15.2% 13.3% Return on net operating assets (RNOA) 11.28% 12.75% Sales (millions) $16,754 $11,035 Average net operating assets (millions) $ 6,981 $ 4,414 Average net financial obligations (millions) $ 2,225 $ 241 Average common equity (millions) $ 4,756 $ 4,173 Explain to what extent the change in common equity from 2011 to 2012 is due to sales...
Vodafone is based in the United Kingdom. Selected data from Vodafone’s 2012 annual report follows (pounds...
Vodafone is based in the United Kingdom. Selected data from Vodafone’s 2012 annual report follows (pounds in millions). 2012 2011 2010 Revenues $46,417 $45,884 $44,472 Gross profit % 32.04% 32.84% 33.80% Operating profit 11,187 5,596 9,480 Net cash flow less capital expenditures 8,459 9,173 9,145 Net earnings 7,003 7,870 8,618 In its 2012 annual reports, Vodafone states, " Our leading performance is based on 3 core strengths. The successful implementation of our strategy to generate liquidity or free cash flow...
The following table shows an abbreviated income statement and balance sheet for McDonald's Corporation for 2012....
The following table shows an abbreviated income statement and balance sheet for McDonald's Corporation for 2012. INCOME STATEMENT OF MCDONALD’S CORP., 2012 (Figures in $ millions)   Net sales 27,572   Costs 17,574   Depreciation 1,407   Earnings before interest and taxes (EBIT) 8,591   Interest expense 522   Pretax income 8,069   Taxes 2,624   Net income 5,445 BALANCE SHEET OF MCDONALD’S CORP., 2012 (Figures in $ millions)   Assets 2012 2011 Liabilities and Shareholders' equity 2012 2011 Current assets Current liabilities   Cash and marketable securities 2,341 2,341...
Following is information for Goodyear Tire & Rubber Company for three recent years. Reconcile the retained...
Following is information for Goodyear Tire & Rubber Company for three recent years. Reconcile the retained earnings account for the three-year period. (in millions) Retained earnings 12/31/2010 $866 Net income, 2013 629 Net income, 2012 212 Net income, 2011 343 Dividends, 2013 41 Dividends, 2012 29 Dividends, 2011 22
Applying the Accounting Equation and Calculating Ratios The following table contains financial statement information for The...
Applying the Accounting Equation and Calculating Ratios The following table contains financial statement information for The Procter & Gamble Company ($ millions). Year Assets Liabilities Equity Net Income 2011 $138,354 $70,353 $       ? $11,927 2012 ? 68,209 64,035 10,904 2013 139,263 ? 68,709 11,402 Required a. Compute the missing amounts for assets, liabilities, and equity for each year. 2011 $---------- million 2012 $---------- million 2013 $---------- million b. Compute return on equity for 2012 and 2013. (Round your answer to...
Sustainable Growth Rate - Company A reports the following information in a recent financial statement ($...
Sustainable Growth Rate - Company A reports the following information in a recent financial statement ($ millions except for Earnings per shares and Dividends per share). Company A Year 1 Year 2 Year 3 Sales $56,741 $68,222 $83,503 Net income 8,684 10,340 12,075 Shareholder equity 62,908 66,760 69,494 Earnings per share 2.79 3.22 3.86 Dividends per share 1.15 1.28 1.45 (a) Use the above information to compute Company A sustainable growth rate for Years 2 and 3? Comment on Company...
Draw up an income statement and balance sheet for this company for 2011 and 2012. 2011...
Draw up an income statement and balance sheet for this company for 2011 and 2012. 2011 2012 Sales $ 7,835 $ 8,409 Depreciation 1,125 1,126 Cost of goods sold 2,696 3,060 Other expenses 639 534 Interest 525 603 Cash 4,109 5,203 Accounts receivable 5,439 6,127 Short-term notes payable 794 746 Long-term debt 13,460 16,050 Net fixed assets 34,455 35,277 Accounts payable 4,316 4,185 Inventory 9,670 9,938 Dividends 956 1,051
The following financial statement data are taken from Segura's annual report: (in millions) Current assets $8,870...
The following financial statement data are taken from Segura's annual report: (in millions) Current assets $8,870 Other assets 606 Intangibles 915 Property, plant, and equipment 2,510 Current liabilities 7,513 Long-term liabilities 750 Long-term debt 1,332 Stockholders' equity 3,306 Compute the debt / tangible net worth ratio. a. 4.01 to 1 b. 1.34 to 1 c. 0.40 to 1 d. 3.90 to 1 e. 0.74 to 1
The following financial statement data are taken from Segura's annual report: (in millions) Current assets $8,870...
The following financial statement data are taken from Segura's annual report: (in millions) Current assets $8,870 Other assets 606 Intangibles 915 Property, plant, and equipment 2,510 Current liabilities 7,513 Long-term liabilities 750 Long-term debt 1,332 Stockholders' equity 3,306 Compute the debt / tangible net worth ratio. a. 4.01 to 1 b. 1.34 to 1 c. 3.90 to 1 d. 0.74 to 1 e. 0.40 to 1
Ratio Analysis Presented below are summary financial data from Pompeo's annual report:( Amounts in millions )...
Ratio Analysis Presented below are summary financial data from Pompeo's annual report:( Amounts in millions ) Balance Sheet:? Cash and Cash Equivalents $2,200 Marketable Securities 16,200 Accounts Receivable (net) 10,000 Total Current Assets 42,000 Total Assets 155,000 Current Liabilities 30,000 Long-Term Debt 47,500 Shareholders' Equity 79,500 Income Statement: Interest Expense 6,400 Net Income Before Taxes 36,800 Calculate the following ratios: (Round to 2 decimal points) a. Times-interest-earned ratio b.quick ratio c. current ratio
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT