Analyzing and Interpreting Stockholders' Equity and EPSFollowing is the stockholders' equity section of the balance sheet for The Procter & Gamble Company along with selected earnings and dividend data. For simplicity, balances for noncontrollinginterests have been left out of income and shareholders' equity information.$ millions except per share amounts20142013Net earnings attributable to Procter & Gamble shareholders$11,156 $11,797Common dividends5,8835,534Preferred dividends256233Basic net earnings per common share$3.82$4.12Diluted net earnings per common share$3.66$3.93Shareholders' equity:Convertible class A preferred stock, stated value $1 per share$1,195$1,234Common stock, stated value $1 per share4,0084,008Additional paid-in capital63,18162,405Treasury stock, at cost (shares held: 2014--1261.2; 2013--1243)(69,604) (67,278)Retained earnings75,34970,682Accumulated other comprehensive income/(loss)(9,333) (2,054)Other(761)(996)Shareholders' equity attributable to Procter & Gamble shareholders $64,035 $68,001a. Compute the number of common shares outstanding at the end of each fiscal year. Estimate the average number of shares outstanding during 2014.Hint: To compute the 2014 Average, use the equation for Basic EPS and solve for the denominator (average common shares outstanding). Do not take an average of 2013 and 2014 sharesoutstanding.Note: Round to one decimal place.20140 million20130 million2014 Average0 million a. Compute the number of common shares outstanding at the end of each fiscal year. Estimate the average number of shares outstanding during 2014.Hint: To compute the 2014 Average, use the equation for Basic EPS and solve for the denominator (average common shares outstanding). Do not take an average of 2013 and 2014 sharesoutstanding.Note: Round to one decimal place.20140 million20130 million2014 Average0 millionb. Calculate the average cost per share of the shares held as treasury stock at the end of each fiscal year. Round to two decimal places.2014 $2013 $c. In 2014, preferred shareholders elected to convert 41 million shares of preferred stock into common stock. Rather than issue new shares, the company granted 41 million shares held intreasury stock to the preferred shareholders. Prepare a journal entry to illustrate how this transaction would have been recorded. (Hint: use the cost per share for 2013 determined in b.) Enteranswers in millions. Round to the nearest million.DescriptionDebitCreditAdditional paid-in capitald. Calculate P&G's return on common equity (ROCE) for fiscal 2014. Round to one decimal place.20140 %Check

Question

Accepted Answer

a.

2014
2,765

2013
2,746.80

2014 Average
2,853.40

b.

2014
55.18

2013
54.12

c.…