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Financial statements refer to the annual reports that a business entity prepares to determine its growth, solvency, liquidity, and profitability. It includes an income statement, balance sheet, cash flow statement, and statement of retained earnings.

The P&G Company chooses the consolidated income statement format to present its information associated with revenues and expenses.

The primary sources of revenue for the company are the sale of goods and revenue generated through interest.

Computation of gross profit for 2012

$$\begin{gathered} \text{Gross profit}=\text{Net sales}-\text{Cost of goods sold} \\ \text{Gross profit}=\$65,299-\$32,909 \\ \text{Gross profit}=\$32,390 \end{gathered}$$

Computation of gross profit for 2013

$$\begin{gathered} \text{Gross profit}=\text{Net sales}-\text{Cost of goods sold} \\ \text{Gross profit}=\$65,058-\$32,535 \\ \text{Gross profit}=\$32,523 \end{gathered}$$

Computation of gross profit for 2014

$$\begin{gathered} \text{Gross profit}=\text{Net sales}-\text{Cost of goods sold} \\ \text{Gross profit}=\$66,832-34,268 \\ \text{Gross profit}=\$32,564 \end{gathered}$$

The company differentiates the operating and non-operating revenues for a better understanding of the users.

It also facilitates in presenting the information associated with revenues accurately.

In addition, users of financial information can draw effective decisions from the bifurcated revenue data provided to them.

The company reported solvency ratios in its financial summary to present its ability to continue as a going concern.

Solvency ratios mainly include debt ratio, debt to equity ratio, and many more.