The Quaker Oats Company and Subsidiaries Consolidated

Statements of Income
Dollars in Millions (Except Per Share Data)
Year Ended June 30
1994

1993

1992

Net Sales

$5,955.0

$5,730.6

$5,576.4

Cost of goods sold

2,926.2

2,870.0

2,831.1

Gross profit

3,028.8

2,860.6

2,745.3

Selling, general and administrative expenses

2,425.6

2,302.3

2,244.3

Restructuring charges and gains on divestitures -- net

Interest expense -- net of $8.9, $10.5 and $9.6

108.6

20.5

(1.0)

89.7

55.1

67.4

Foreign exchange loss -- net

26.2

15.1

13.1

Income Before Income Taxes

and Cumulative Effect of Accounting Changes

378.7

467.6

421.5

Provision for income taxes

147.2

180.8

173.9

Income Before Cumulative Effect of Accounting Changes

231.5

286.8

247.6

Cumulative effect of accounting changes -- net of tax

----

(115.5)

----

Net Income

231.5

171.3

247.6

Preferred dividends -- net of tax

4.0

4.2

4.2

Net Income Available for Common

$227.5

$167.1

$243.4

Income Before Cumulative Effect of Accounting Changes

$3.36

$3.93

$3.25

Cumulative effect of accounting changes

----

(1.59)

----

Net Income

$3.36

$2.34

$3.25

Dividends declared

$2.12

$1.92

$1.72

67,618

71,974

74,881

interest income, respectively

Per Common Share:

Average Number of Common Shares Outstanding

(in thousands)

See accompanying notes to the consolidated financial statements.

The Quaker Oats Company and Subsidiaries

Consolidated
Balance Sheets
June 30

1994

1993

1992

Cash and cash equivalents

$140.4

$61.0

$95.2

Trade accounts receivable -- net of allowances

509.4

478.9

575.3

Finished goods

266.5

241.5

302.8

Grains and raw materials

78.8

73.1

93.7

Packaging materials and supplies

40.2

39.4

38.8

385.5

354.0

435.3

218.3

173.7

150.4

1,253.6

1,067.6

1,256.2

Other Receivables and Investments

82.1

88.8

83.0

Property, plant and equipment

2,125.9

2,059.2

2,066.1

911.7

831.0

792.8

1,214.2

1,228.2

1,273.3

Intangible Assets -- Net of Amortization

493.4

431.3

427.4

Total Assets

$3,043.3

$2,815.9

$3,039.9

Assets
Current Assets:

Inventories:

Total inventories
Other current assets
Total Current Assets

Less accumulated depreciation

Property - Net

Dollars in Millions
June 30

1994

1993

1992

Liabilities and Shareholders' Equity

Current Liabilities:
Short-term debt

$211.3

$128.0

$61.0

Current portion of long-term debt

45.4

48.9

57.9

Trade accounts payable

406.3

391.6

420.2

Accrued payroll, pension and bonus

158.9

161.3

147.0

Accrued advertising and merchandising

149.6

130.6

120.2

Income taxes payable

40.6

33.7

82.6

Other accrued liabilities

247.0

211.0

198.6

1,259.1

1,105.1

1,087.5

Long-term Debt

759.5

632.6

688.7

Other Liabilities

481.4

426.2

171.7

Deferred Income Taxes

82.2

89.5

242.0

Preferred Stock, Series B, no par value, authorized

1,750,000 shares; issued 1,282,051 of $5.46
cumulative convertible shares
(liquidating preference of $78 per share)

100.0

100.0

100.0

Deferred Compensation

(80.8)

(85.9)

(90.5)

Treasury Preferred Stock, at cost, 47,817 shares;

34,447 shares; and 21,315 shares, respectively

(3.9)

(2.7)

(1.6)

420.0

420.0

420.0

Additional paid-in capital

----

----

2.9

Reinvested earnings

1,273.6

1,190.1

1,162.3

Cumulative translation adjustment

(75.4)

(65.4)

(24.5)

(143.5)

(154.0)

(160.4)

(1,028.9)
445.8
$3,043.3

(839.6)
551.1
$2,815.9

(558.2)
842.1
$3,039.9

Total Current Liabilities

Common Shareholders' Equity

Common stock, $5 par value, authorized 200,000,000
shares; issued 83,989,396 shares

Deferred compensation
Treasury common stock, at cost, 17,185,100 shares;
14,533,157 shares; and
10,586,091 shares, respectively
Total Common Shareholders' Equity
Total Liabilities and Shareholders' Equity