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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. Click here to view Appendix B Refer to P&G's financial statements and the accompanying notes to answer the following questions. What was P&G's inventory turnover in 2017? What is its gross profit percentage? Evaluate P&G's inventory turnover and its gross profit percentage. (Round inventory turnover to 1 decimal place, e.g. 52.5 and gross profit percentage to 2 decimal places, e.g. 52.75%.) Inventory turnover 2017 2016 Gross profit percentage J% % Consolidated Statements of Earnings Amounts in millions except per share amounts; Years ended June 30 2017 2016 2015 NET SALES $ 65,058 $ 65,299 $ 70,749 32,535 32,909 37,056 18,568 18,949 20,616 Cost of products sold Selling, general and administrative expense Venezuela deconsolidation charge OPERATING INCOME - 2,028 13,955 13,441 11,049 Interest expense 465 579 626 Interest income 171 182 149 (404) 325 440 Other non-operating income/(expense), net EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 13,257 13,369 11,012 3,063 3,342 2,725 Income taxes on continuing operations NET EARNINGS FROM CONTINUING OPERATIONS 10,194 10,027 8,287 NET EARNINGS/(LOSS) FROM DISCONTINUED OPERATIONS 577 (1,143) 5,217 15,411 NET EARNINGS 10,604 7,144 85 96 108 Less: Net earnings attributable to noncontrolling interests NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE BASIC NET EARNINGS PER COMMON SHARE: (1) $ 15,326 $ 10,508 $ 7,036 $ 3.79 $ 3.59 $ 2.92 2.01 0.21 (0.42) Earnings from continuing operations Earnings/(loss) from discontinued operations BASIC NET EARNINGS PER COMMON SHARE DILUTED NET EARNINGS PER COMMON SHARE: (1) $ 5.80 $ 3.80 $ 2.50 $ 3.69 $ 3.49 $ 2.84 Earnings from continuing operations Earnings/(loss) from discontinued operations DILUTED NET EARNINGS PER COMMON SHARE 1.90 0.20 (0.40) $ 5.59 $ 3.69 $ 2.44 DIVIDENDS PER COMMON SHARE $ 2.70 $ 2.66 $ 2.59 Consolidated Statements of Comprehensive Income Amounts in millions; Years ended June 30 2017 2016 2015 NET EARNINGS $ 15,411 $ 10,604 $ 7,144 OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX Financial statement translation 239 (1,679) (7,220) 1 1,234 (306) (59) 28 24 Unrealized gains/(losses) on hedges (net of $(186), $5 and $739 tax, respectively) Unrealized gains/(losses) on investment securities (net of $(6), $7 and $0 tax, respectively) Unrealized gains/(losses) on defined benefit retirement plans (net of $551, $(621) and $328 tax, respectively) TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX TOTAL COMPREHENSIVE INCOME 1,401 (1,477) 844 (3,127) (5,118) 1,275 16,686 7,477 2,026 85 96 108 Less: Total comprehensive income attributable to noncontrolling interests TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO PROCTER & GAMBLE $ 16,601 $ 7,381 $ 1,918 Consolidated Balance Sheets Amounts in millions; As of June 30 2017 2016 Assets CURRENT ASSETS Cash and cash equivalents $ 7,102 $ 5,569 9,568 Available-for-sale investment securities 6,246 4,373 Accounts receivable 4,594 INVENTORIES Materials and supplies 1,308 1,188 Work in process 529 563 Finished goods 2,787 2,965 Total inventories 4,624 4,716 Deferred income taxes 1,507 Prepaid expenses and other current assets 2,139 2,653 Current assets held for sale = 7,185 TOTAL CURRENT ASSETS 26,494 33,782 PROPERTY, PLANT AND EQUIPMENT, NET 19,893 19,385 GOODWILL 44,699 44,350 TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET 24,187 24,527 OTHER NONCURRENT ASSETS 5,133 5,092 TOTAL ASSETS $ 120,406 $ 127,136 Liabilities and Shareholders' Equity CURRENT LIABILITIES Accounts payable $ 9,632 $ 9,325 Accrued and other liabilities 7,024 7,449 Current liabilities held for sale 2,343 Debt due within one year 13,554 11,653 TOTAL CURRENT LIABILITIES 30,210 30,770 LONG-TERM DEBT 18,038 18,945 DEFERRED INCOME TAXES 8,126 9,113 OTHER NONCURRENT LIABILITIES 8,254 10,325 TOTAL LIABILITIES 64,628 69,153 SHAREHOLDERS' EQUITY 1,006 1,038 Convertible Class A preferred stock, stated value $1 per share (600 shares authorized) Non-Voting Class B preferred stock, stated value $1 per share (200 shares authorized) Common stock, stated value $1 per share (10,000 shares authorized; shares issued: 2017 - 4,009.2, 2016 - 4,009.2) Additional paid-in capital 4,009 4,009 63,641 63,714 Reserve for ESOP debt retirement Accumulated other comprehensive income/(loss) Treasury stock, at cost (shares held: 2017 - 1,455.9, 2016 - 1,341.2) Retained earnings Noncontrolling interest TOTAL SHAREHOLDERS' EQUITY (1,249) (1,290) (14,632) (15,907) (93,715) (82,176) 96,124 87,953 594 642 55,778 57,983 $ 120,406 $ 127,136 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY Consolidated Statements of Shareholders' Equity Accumulated Total Common Additional Reserve for Other Non- Dollars in millions; Common Preferred Treasury Retained Share- Shares Paid-In ESOP Debt Comprehensive controlling Shares in thousands Stock Stock Stock Earnings holders' Outstanding Capital Retirement Income! Interest Equity (Loss) 2,710,806 $4,009 $1,111 $63,911 ($1,340) ($7,662) ($75,805) $762 $69,976 $84,990 7,036 108 7,144 (5,118) (5,118) BALANCE JUNE 30, 2014 Net earnings Other comprehensive loss Dividends to shareholders: Common Preferred, net of tax benefits Treasury purchases Employee plan issuances Preferred stock conversions (7,028) (259) (7,028) (259) (4,604) 3,309 (54,670) 54,100 4,335 (4,604) 3,153 156 (34) 4 30 ESOP debt impacts 20 68 88 (219) Noncontrolling interest, net BALANCE JUNE 30, 2015 (239) (458) $631 $63,050 2,714,571 $4,009 $1,077 $63,852 ($1,320) ($12,780) ($77,226) $84,807 Net earnings 10,508 96 10,604 (3,127) (3,127) (7,181) (255) Other comprehensive loss Dividends to shareholders: Common Preferred, net of tax benefits Treasury purchases(1) Employee plan issuances Preferred stock conversions ESOP debt impacts Noncontrolling interest, net BALANCE JUNE 30, 2016 (7,181) (255) (8,217) 3,090 (103,449) 52,089 4,863 (8,217) 3.234 (144) 6 (39) 33 30 74 104 (85) (85) 2,668,074 $4,009 $1,038 $63,714 ($1,290) ($15,907) ($82,176) $87,953 $642 $57,983 Net earnings 15,326 85 15,411 1,275 1,275 Other comprehensive loss Dividends to shareholders: Common Preferred, net of tax benefits Treasury purchases(2) Employee plan issuances Preferred stock conversions (6,989) (247) (6,989) (247) (14,625) 2,981 (164,866) 45,848 (14,625) 3,058 (77) 4,241 (32) 28 41 81 ESOP debt impacts Noncontrolling interest, net BALANCE JUNE 30, 2017 122 (133) (133) $594 $55,778 2,553,297 $4,009 $1,006 $63,641 ($1,249) ($14,632) ($93,715) $96,124 Consolidated Statements of Cash Flows 2017 2016 2015 Amounts in millions; Years ended June 30 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR $ 7,102 $ 6,836 $ 8,548 15,411 10,604 7,144 2,820 3,078 3,134 OPERATING ACTIVITIES Net earnings Depreciation and amortization Loss on early extinguishment of debt Share-based compensation expense Deferred income taxes 543 351 335 337 (815) (601) (5,490) (803) (766) (41) 2,028 450 2,174 (322) 35 349 Gain on sale of assets Venezuela deconsolidation charge Goodwill and intangible asset impairment charges Change in accounts receivable Change in inventories Change in accounts payable, accrued and other liabilities Change in other operating assets and liabilities Other 71 116 313 (149) 1,285 928 (976) (43) 204 162 184 12,753 15,435 746 TOTAL OPERATING ACTIVITIES 14,608 INVESTING ACTIVITIES (3,384) (3,314) (3,736) 571 432 4,498 Capital expenditures Proceeds from asset sales Cash related to deconsolidated Venezuela operations Acquisitions, net of cash acquired Purchases of short-term investments (908) (16) (186) (137) (4,843) (2,815) (3,647) 1,488 1,354 1,203 (996) (874) (475) 1,870 (143) (26) 93 (163) (5,689) (5,575) (2,890) Proceeds from sales and maturities of short-term investments Pre-divestiture addition of restricted cash related to the Beauty Brands divestiture Cash transferred at closing related to the Beauty Brands divestiture Release of restricted cash upon closing of the Beauty Brands divestiture Cash transferred in Batteries divestiture Change in other investments TOTAL INVESTING ACTIVITIES FINANCING ACTIVITIES Dividends to shareholders Change in short-term debt Additions to long-term debt Reductions of long-term debt Treasury stock purchases Treasury stock from cash infused in Batteries divestiture Impact of stock options and other TOTAL FINANCING ACTIVITIES EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH (7,236) (7,436) (7,287) 2,727 (418) (2,580) 3,603 3,916 2,138 (4,931) (1) (2,213) (3,512) (5,204) (4,004) (4,604) (1,730) 2,473 2,672 2,826 (8,568) (9,213) (13,019) EQUIVALENTS CHANGE IN CASH AND CASH EQUIVALENTS (29) (381) (411) (1,533) 266 (1,712) $ 5,569 $ 7,102 $ 6,836 CASH AND CASH EQUIVALENTS, END OF YEAR SUPPLEMENTAL DISCLOSURE Cash payments for interest Cash payment for income taxes Divestiture of Batteries business in exchange for shares of P&G stock(2) Divestiture of Beauty business in exchange for shares of P&G stock and assumption of debt Assets acquired through non-cash capital leases are immaterial for all periods. $ 518 $ 569 $ 678 3,714 3,730 4,558 4,213 11,360

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