Question

Analyzing and Interpreting Equity Accounts and Comprehensive Income Assume this is the shareholders' equity section of the 2008 balance sheet for Procter & Gamble Company and its statement of shareholders equity. June 20 (In millions, except per share amounts) 2007 2008 Shareholders Equity Convertible Class A preferred stock, stated value $1 per share (600 shares authorized) Non-voting Class B preferred stock, stated value S1 per share (200 shares authorized) Common stock, stated value S1 per share (10.000 shares authorized: shares issued: 2008-4.001.8, 2007-3,989.7) $ 1.366 $1.406 4,002 3.990 60,087 58.810 Additional paid-in capital (1,325) (1.308) Reserve for ESOP debt retirement Accumulated other comprehensive income 617 3.746 (47,588) (38,772) Treasure stock, at cost (shares held: 2008-969.1. 2007-857.8) 41.797 Retained earnings 48,844 S 69.132 $ 66.540 Total shareholders' equity of Shareholders' Equity Consolidated Statem Accumu-lated Additional Reserve for Other Common Common Preferred Stock ESOP Debt Comprehensive Treasury Retained Shares Paid-in Dollars in millions; Shares in thousands Outstanding 3,131.946 Stock Capital Retirement Income Stock Earnings Total 5617 S(38,772) $41,797 5 66,540 $ 58.810 $ (1.308) $1,406 Balance June 30, 2007 Net earnings $3.990 12.075 12.075 Other comprehensive income: 6.543 Financial statement translation Net investement hedges, net of $ 1.719 tax 6.543 (2.951) (2951) (463) (463) Other, net of tax benefits Taal maenhan nnn

Answer 1

Convertible means the holder of the security has an option to convert (exchange) the security into another security. b) 4,922 number of shares of common stock Procter & Gamble issued when convertible class A preferred stock was converted during fiscal 2008. Compute Average price as follows: Total value Average Price (Employee Plan Issuances)== Number of shares outstanding 2.480,000,000 43,910,000 = $56.48

The accumulated other comprehensive income account reflects the cumulative change in balance sheet accounts not recorded in net income nor arising from transaction with shareholder. Common dividends = $4,619 millions Preferred dividends = $178 milions