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Financial Reporting Problemhe Procter & Gamble Company (P&G)
The financial statements of P&G are presented in Appendix 5B. The company's complete annual report, including the notes to the financial statements, can be accessed at the book's companion website, www. wiley.com/college/kieso.
InstructionsRefer to P&G's financial statements and the accompanying notes to answer the following questions.
(a) What criteria does P&G use to classify "Cash and cash equivalents" as reported in its balance sheet?
(b) As of June 30, 2011, what balances did P&G have in cash and cash equivalents? What were the major uses of cash during the year?
(c) P&G reports no allowance for doubtful accounts, suggesting that bad debt expense is not material for this company. Is it reasonable that a company like P&G would not have material bad debt expense? Explain.
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