Procter & Gamble is a $77 billion company that sells products that are part of most of our daily lives, including Mr. Clean, Cheer, Crest, Vicks, Scope, Pringles, Folgers, Vidal Sassoon, Zest, and Charmin. The annual report for P&G contained the following information:
a. Retained earnings at the end of 2007 totaled $41,797 million.
b. Net income for 2008 was $12,075 million.
c. Par value of the stock is $1 per share.
d. Cash dividends declared in 2008 were $1.45 per share.
e. The Common Stock, Par Value account totaled $4,002 million at the end of 2008 and $3,990 at the end of 2007.
Required (assume that no other information concerning stockholders’ equity is relevant):
1. Estimate the number of shares outstanding at the end of 2008.
2. Estimate the amount of retained earnings at the end of 2008.
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