Exhibit 13.2                   
                   
                   The Quaker Oats Company and Subsidiaries
                       Consolidated Statements of Income
<TABLE>
<CAPTION>                                       

                                              Dollars in Millions (Except Per Share Data)                                

                            Transition      Prior               
                           Period Ended     Period Ended              Fiscal Year
                           December 31,     December 31,             Ended June 30,
                             
                                       
                                   1995         1994          1995        1994        1993
                                             (unaudited)
<S>                           <C>          <C>           <C>         <C>         <C>
Net Sales                      $2,733.1     $3,144.3      $6,365.2    $5,955.0    $5,730.6
Cost of goods sold              1,529.3      1,616.4       3,381.5     2,926.2     2,870.0
Gross profit                    1,203.8      1,527.9       2,983.7     3,028.8     2,860.6
Selling, general and                                             
  administrative expenses       1,078.1      1,322.5       2,603.2     2,425.6     2,302.3
Restructuring charges and                                        
  gains on divestitures - net      40.8           --      (1,094.3)      108.6        20.5
  Interest expense                 57.9         43.3         117.0        98.6        65.6
Interest income                    (3.7)        (3.8)         (6.3)       (8.9)      (10.5)
Foreign exchange loss  net          5.1          0.9           4.2        26.2        15.1
Income Before Income Taxes                                       
  and Cumulative Effect                                         
  of Accounting Changes            25.6        165.0       1,359.9       378.7       467.6
  Provision for income taxes       11.9         69.2         553.8       147.2       180.8
Income Before Cumulative Effect                                        
  of Accounting Changes            13.7         95.8         806.1       231.5       286.8
Cumulative effect of                                             
  accounting  changes                
  net of tax                         --         (4.1)         (4.1)         --      (115.5)
  Net Income                       13.7         91.7         802.0       231.5       171.3
Preferred dividends - net           2.0          2.0           4.0         4.0         4.2
  of tax
Net Income Available for       $   11.7        $89.7        $798.0      $227.5      $167.1
  Common
Per Common Share:                                                
  Income Before Cumulative                                                
  Effect of Accounting Changes $   0.09       $ 0.70        $ 6.00      $ 1.68      $ 1.96
  Cumulative effect of                                         
  accounting changes                 --        (0.03)        (0.03)         --       (0.79)
                                      
  Net Income                   $   0.09       $ 0.67        $ 5.97      $ 1.68      $ 1.17
   
Dividends declared             $   0.57       $ 0.57        $ 1.14      $ 1.06      $ 0.96
                                                                 
Average Number of Common                                         
  Shares Outstanding            134,355      133,567       133,763     135,236     143,948
  in thousands)

<FN>
See accompanying notes to the consolidated financial statements.

40
                                           The Quaker Oats Company and subsiudiaries
                                                   Consolidated Balance Sheets

<CAPTION>

                                                               Dollars in Millions                          

                                     December 31,                 June 30,
                                 
                                            1995       1995        1994         1993
<S>                                    <C>          <C>         <C>        <C>     
Assets                                 
Current Assets                         
 Cash and cash equivalents              $   93.2   $  101.8      $140.4     $   61.0
 Trade accounts receivable - net           398.3      546.8       509.4        478.9
    of allowances                               
 Inventories                                                   
    Finished goods                         203.6      267.4       266.5        241.5
    Grains and raw materials                69.7       94.4        78.8         73.1
    Packaging materials and supplies        33.4       44.2        40.2         39.4
       Total inventories                   306.7      406.0       385.5        354.0
                                                               
Other current assets                       281.9      262.0       218.3        173.7
    Total Current Assets                 1,080.1    1,316.6     1,253.6      1,067.6
                                                               
Property, Plant and Equipment                                  
    Land                                    26.0       25.0        30.6         28.7
    Buildings and improvements             398.4      376.0       455.0        441.5
    Machinery and equipment              1,521.6    1,442.7     1,640.3      1,589.0
    Property, plant and equipment        1,946.0    1,843.7     2,125.9      2,059.2
    Less accumulated depreciation          778.2      730.3       911.7        831.0

       Property - Net                    1,167.8    1,113.4     1,214.2      1,228.2
                                                               
Intangible Assets - Net of 
    Amortization                         2,309.2    2,311.1       493.4        431.3
       
Other Assets                                63.3       85.8        82.1         88.8
Total Assets                            $4,620.4   $4,826.9    $3,043.3     $2,815.9

Liabilities and Shareholders' Equity                                         

Current Liabilities                                                    
     Short-term debt                    $  643.4   $  510.1    $  211.3     $  128.0
     Current portion of long-term debt      68.6       38.8        45.4         48.9
     Trade accounts payable                298.4      423.8       406.3        391.6
     Accrued payroll, benefits and         105.1      123.8       158.9        161.3
        bonus
     Accrued advertising and               150.9      165.0       149.6        130.6
        merchandising
     Income taxes payable                   65.4      180.1        40.6         33.7
     Other accrued liabilities             369.9      371.3       247.0        211.0
        Total Current Liabilities        1,701.7    1,812.9     1,259.1      1,105.1
                                                               
Long-term Debt                           1,051.8    1,103.1       759.5        632.6
Other Liabilities                          536.3      530.0       481.4        426.2
Deferred Income Taxes                      233.6      233.3        82.2         89.5
                                                               
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        100.0
Deferred Compensation                      (71.7)     (74.9)      (80.8)       (85.9)
Treasury Preferred Stock, at cost,                               
   122,562 shares, 81,194 shares,
   47,817 shares and 34,447 shares,
   respectively                            (10.6)      (6.3)       (3.9)        (2.7)
                                                               
Common Shareholders' Equity                                    
 Common stock, $5 par value, authorized                                  
    400 million, 400 million, 200
    million and 200 million shares,
    respectively                           840.0      840.0       420.0        420.0   
 Reinvested earnings                     1,433.6    1,499.3     1,273.6      1,190.1
 Cumulative translation adjustment         (77.8)     (61.4)      (75.4)       (65.4)
 Deferred compensation                    (118.1)    (132.2)     (143.5)      (154.0)
 Treasury common stock, at cost           (998.4)  (1,016.9)   (1,028.8)      (839.6)
 
     Total Common Shareholders'          1,079.3    1,128.8       445.8        551.1
        Equity
Total Liabilities and Shareholders'
   Equity                               $4,620.4   $4,826.9    $3,043.3     $2,815.9

<FN>
See accompanying notes to the consolidated financial statements.

41

                                        The Quaker Oats Company and Subsidiaries
                                          Consolidated Statements of Cash Flows

<CAPTION>

                                                                                    Dollars in Millions
                                                               
                                             Transition        Prior
                                            Period Ended    Period Ended         Fiscal Year
                                             December 31,   December 31,        Ended June 30,       
                                                                              
                                                   1995           1994        1995       1994      1993
                                                            (unaudited)
<S>                                             <C>           <C>         <C>        <C>       <C>                            
Cash Flows from Operating Activities:           
   Net income                                    $ 13.7        $  91.7     $ 802.0    $ 231.5   $ 171.3
      Adjustments to reconcile net income                                      
         to net cash provided by operating
         activities:
            Cumulative effect of accounting
            changes                                  --            4.1         4.1         --     115.5
     Depreciation and amortization                103.2           90.6       191.4      171.2     156.9
     Deferred income taxes                          0.3           (4.4)       17.8       (7.7)    (46.4)
     Gains on divestitures - net of                                     
        tax of $476.2 in fiscal 1995                 --             --      (694.6)      (9.8)    (27.8)
     Restructuring charges                         40.8             --        76.5      118.4      48.3
     Loss on disposition of property
        and equipment                               9.4            4.0        22.0       15.0      23.8
     Decrease (increase) in trade
        accounts receivable                       142.9           28.4       (70.8)     (77.7)     59.1
     Decrease (increase) in inventories            95.3           (6.0)      (56.5)     (67.6)     41.9
     (Increase) in other current assets           (22.9)          (0.3)      (53.4)     (56.3)    (25.8)
     (Decrease) increase in trade
        accounts payable                         (120.3)         (86.2)       83.9       44.1      (7.6)
     (Decrease) increase in other
        current liabilities                      (185.8)         (16.7)       52.1        6.6      (6.4)
     Change in deferred compensation               17.3           13.1        17.2       15.6      11.0
     Other items                                   (9.6)          34.4        83.8       67.5      44.4
     Net Cash Provided by Operating
        Activities                                 84.3          152.7       475.5      450.8     558.2

Cash Flows from Investing Activities:                                             
   Additions to property, plant and
      equipment                                  (145.0)        (119.3)     (275.5)    (175.1)   (172.3)
   Business acquisitions                           (8.0)      (1,827.2)   (1,876.5)     (96.3)    (40.4)
   Business divestitures - net of tax                                    
      of $476.2 in fiscal 1995 -
      and asset dispositions                       25.3             --     1,253.4       14.2      41.6
   Change in other assets                           6.8           (1.4)       (4.0)      (6.4)    (25.6)
   Net Cash Used in Investing         
      Activities                                 (120.9)      (1,947.9)     (902.6)    (263.6)   (196.7)
                                                                       
Cash Flows from Financing Activities:                                             
   Cash dividends                                 (77.7)         (77.7)     (154.8)    (144.6)   (140.3)
   Change in short-term debt                      134.1        1,594.0       216.4       83.3      67.0
   Proceeds from long-term debt                      --            0.7       213.3      222.2       0.5    
   Reduction of long-term debt                    (21.2)         (50.5)      (89.3)    (100.6)    (59.0)
   Proceeds from short-term debt         
      to be refinanced                               --          300.0       188.0         --        --
   Issuance of common treasury stock               11.4           14.0        23.0       11.8      23.3
   Repurchases of common stock                       --          (22.5)      (22.5)    (214.9)   (323.1)
   Repurchases of preferred stock                  (4.3)          (1.0)       (2.4)      (1.2)     (1.1)
                                                                       
   Net Cash Provided by (Used) in                                    
      Financing Activities                         42.3        1,757.0       371.7     (144.0)   (432.7)
                                                                       
Effect of Exchange Rate Changes on                                     
   Cash and Cash Equivalents                      (14.3)           0.8        16.8       36.2      37.0
                                                                       
Net (Decrease) Increase in Cash and
   Cash Equivalents                                (8.6)         (37.4)      (38.6)      79.4     (34.2)
Cash and Cash Equivalents - Beginning
   of Period                                      101.8          140.4       140.4       61.0      95.2
                                                                       
Cash and Cash Equivalents - End of
   Period                                        $ 93.2       $  103.0     $ 101.8    $ 140.4   $  61.0

<FN>
See accompanying notes to the consolidated financial statements.

42

                                                              The Quaker Oats Company and Subsidiaries
                                                       Consolidated Statements of Common Shareholders' Equity
<CAPTION>

                                                                                                              Dollars in Millions
                         Common                       Additional              Cumulative   Deferred      Treasury
                       Stock Issued     Common Shares   Paid-In   Reinvested  Translation  Compensa-   Common Stock            
                     Shares     Amount   Outstanding    Capital    Earnings   Adjustment    tion      Shares      Amount      Total
<S>                            <C>                    <C>        <C>          <C>        <C>                   <C>        <C>
Balance as of                 
June 30, 1992       83,989,396  $420.0    73,403,305   $ 2.9      $1,162.3     $(24.5)    $(160.4)  10,586,091  $  (558.2) $  842.1
Net income                                                           171.3                                                    171.3
Cash dividends 
   declared on
   common stock                                                     (136.1)                                                  (136.1)
Cash dividends
   declared  on                                                                 
   preferred
   stock                                                              (4.2)                                                    (4.2)
Common stock
   issued for
   stock purchase                                               
   and incentive
   plans                                     805,434    (8.4)         (3.2)                           (805,434)      41.7      30.1
Repurchases of
   common stock                           (4,752,500)                                                4,752,500     (323.1)   (323.1)
Foreign currency
   adjustments
   (net of
   allocated
   income tax
   provisions of
   $(12.6)                                                                      (40.9)                                        (40.9)
Deferred
   compensation                                                                               6.4                               6.4
Other                                                    5.5                                                                    5.5
Balance as of
June 30, 1993       83,989,396   420.0    69,456,239      --       1,190.1      (65.4)     (154.0)  14,533,157     (839.6)    551.1
Net income                                                           231.5                                                    231.5
Cash dividends
   declared on                                                                
   common stock                                                     (140.6)                                                  (140.6)
Cash dividends
   declared on                                                                                                               
   on preferred 
   stock                                                              (4.0)                                                    (4.0)
Common stock
   issued for                       
   stock purchase
   and incentive                           
   plans                                     439,142    (1.3)         (3.4)                           (439,142)      25.6      20.9
Repurchases of
   common stock                           (3,091,085)                                                3,091,085     (214.9)   (214.9)
Foreign currency
   adjustments                                                                     
   (net of
   allocated
   income tax                                                             
   benefits of
   $1.4)                                                                        (10.0)                                        (10.0)
Deferred
   compensation                                                                              10.5                              10.5
Other                                                    1.3                                                                    1.3
Balance as of
June 30, 1994       83,989,396   420.0    66,804,296      --       1,273.6      (75.4)     (143.5)  17,185,100   (1,028.9)    445.8
Net income                                                           802.0                                                    802.0
Cash dividends
   declared on                  
   common stock                                                     (150.8)                                                  (150.8)
Cash dividends
   declared on                  
   preferred
   stock                                                              (4.0)                                                    (4.0)
Common stock
   issued for
   stock purchase
   and incentive
   plans                                   1,151,137    (2.2)         (1.5)                         (1,151,137)      34.5      30.8
Repurchases of
   common stock                             (578,000)                                                  578,000      (22.5)    (22.5)
Two-for-one stock
   split-up         83,989,396   420.0    66,804,296                (420.0)                         17,185,100                   --
Foreign currency
   adjustments
   (net of
   allocated
   income tax
   benefits of
   $3.8)                                                                         14.0                                          14.0
Deferred
   compensation                                                                              11.3                              11.3
Other                                                    2.2                                                                    2.2

Balance as of
June 30, 1995      167,978,792   840.0   134,181,729      --       1,499.3      (61.4)     (132.2)  33,797,063   (1,016.9)  1,128.8
Net income                                                            13.7                                                     13.7
Cash dividends
   declared on
   common stock                                                      (75.7)                                                   (75.7)
Cash dividends
   declared on
   preferred 
   stock                                                              (2.0)                                                    (2.0)
Common stock 
   issued for 
   stock purchase
   and incentive 
   plans                                     624,326    (1.8)         (1.7)                           (624,326)      18.5      15.0
Foreign currency
   adjustments(net 
   of allocated
   income tax
   provisions 
   of $(0.3)                                                                    (16.4)                                        (16.4)
Deferred
compensation                                                                                 14.1                              14.1
Other                                                    1.8                                                                    1.8

Balance as of
   December 31,
   1995            167,978,792  $840.0   134,806,055   $  --      $1,433.6     $(77.8)    $(118.1)  33,172,737  $  (998.4) $1,079.3

<FN>
See accompanying notes to the consolidated financial statements.

43

                                          The Quaker Oats Company and Subsidiaries
                                                Geographic Segment Information
<CAPTION>
                                                                                                                     
Dollars in Millions (Except Per Share Data)                                              Net Sales
                               Transition      Prior                                        
                              Period Ended   Period Ended                               Fiscal Year           
                              December 31,   December 31,                              Ended June 30,        
                                                         
                                     1995          1994          1995         1994         1993        1992       1991    
                                             (unaudited)                                      
<S>                             <C>           <C>           <C>          <C>          <C>         <C>        <C>
U.S. and Canadian 
   Grocery Products              $2,165.6      $2,202.7      $4,624.2     $4,252.7     $3,930.3    $3,842.3   $3,860.2
Europe                              213.3         634.5       1,106.1      1,164.3      1,335.8     1,354.5    1,326.4 
Latin America and Pacific           354.2         307.1         634.9        538.0        464.5       379.6      304.6
International            
   Grocery Products                 567.5         941.6       1,741.0      1,702.3      1,800.3     1,734.1    1,631.0
Net Sales and Operating                                                                                           
   Income from Continuing
     Operations                  $2,733.1      $3,144.3      $6,365.2     $5,955.0     $5,730.6    $5,576.4   $5,491.2
Less: General corporate 
  expenses(e)                                                 
   Interest expense - net
   Foreign exchange loss
   (gain) - net
Income from continuing                                                                                             
   operations before                                           
   income taxes and                                            
   cumulative effect
   of accounting
   changes
Provision for                                                
   income taxes                                              
Income from continuing                                                                                             
   operations before                                         
   cumulative effect of                                        
   accounting changes
Income from continuing                                                                                             
   operations per common                                               
   share before cumulative                                          
   effect of accounting
   changes(f)


                                          The Quaker Oats Company and Subsidiaries
                                                Geographic Segment Information
                                                    
<CAPTION>
                                                                                  Operating Income (Loss) (a)(b)(c)(d)
                             Transition        Prior                                        
                            Period Ended    Period Ended                                Fiscal Year           
                            December 31,    December 31,                               Ended June 30,        
                                                         
                                  1995           1994            1995         1994         1993        1992       1991
                                           (unaudited)                                      
<S>                             <C>           <C>           <C>            <C>          <C>         <C>        <C>
U.S. and Canadian 
   Grocery Products              $145.6        $208.1        $  974.7       $430.9       $447.0      $435.0     $429.0
Europe                            (34.4)         12.3           482.7         17.5         52.2        41.2       68.3
Latin America and Pacific          (5.5)         20.6            92.9         88.8         76.0        64.0       35.7
International            
   Grocery Products               (39.9)         32.9           575.6        106.3        128.2       105.2      104.0
Net Sales and Operating                                                                                           
   Income from Continuing
   Operations                     105.7         241.0         1,550.3        537.2        575.2       540.2      533.0
Less: General corporate                       
   expenses(e)                     20.8          35.6            75.5         42.6         37.4        38.2       40.4
   Interest expense - net          54.2          39.5           110.7         89.7         55.1        67.4       86.2
   Foreign exchange loss
   (gain) - net                     5.1           0.9             4.2         26.2         15.1        13.1       (5.1)
Income from continuing                                                                                             
   operations before                                           
   income taxes and                                            
   cumulative effect
   of accounting
   changes                         25.6         165.0         1,359.9        378.7        467.6       421.5      411.5
Provision for                                                
   income taxes                    11.9          69.2           553.8        147.2        180.8       173.9      175.7
Income from continuing                                                                                             
   operations before                                         
   cumulative effect of                                        
   accounting changes            $ 13.7        $ 95.8        $  806.1       $231.5       $286.8      $247.6     $235.8
Income from continuing                                                                                             
   operations per common                                               
   share before cumulative                                          
   effect of accounting 
   changes(f)                    $ 0.09        $ 0.70        $   6.00       $ 1.68       $ 1.96      $ 1.63     $ 1.53

<FN>
(a)The 1995 transition period results include pretax restructuring charges of
$40.8 million, or $.18 per share, for the Snapple beverage supply chain cost
reductions and for realignment activities in Europe and Asia/Pacific.
Restructuring charges were included in operating income as follows:  $24.4
million in the United States and Canada; $14.1 million in Europe; and $2.3
million in Latin America and Pacific.

(b)Fiscal 1995 results include:  pretax gains of $604.2 million, or $2.81 per
share, for the sale of U.S. and Canadian businesses; $492.1 million, or $2.06
per share, for the sale of European businesses; and $74.5 million, or $.33 per
share, for the sale of a Latin American business.  Fiscal 1995 results also
include pretax restructuring charges of $76.5 million, or $.35 per share, for
cost-reduction and realignment activities.  Restructuring charges were included
in operating income as follows:  $47.1 million in the United States and Canada;
$25.3 million in Europe; and $4.1 million in Latin America and Pacific.

(c)Fiscal 1994 results include  pretax restructuring charges of $118.4 million,
or $.55 per share, for work force reductions, plant consolidations and product
discontinuations and a pretax gain of $9.8 million, or $.07 per share, for the
sale of a business in Venezuela.  Restructuring charges were included in
operating income as follows:  $112.9 million in the United States and Canada;
$1.7 million in Europe; and $3.8 million in Latin America and Pacific.

(d)See Management's Discussion and Analysis for further discussion of
gains on divestitures and restructuring charges from fiscal 1993
through the transition period ended December 31, 1995.

(e)Prior period general corporate expenses include a provision of $18.4
million, or $.08 per share, for estimated litigation costs.  Fiscal
1995 general corporate expenses include a provision of $29.0 million,
or $.13 per share, for estimated litigation costs.

(f)Per share data reflect the fiscal 1995 two-for-one stock split-up.

44


                                               The Quaker Oats Company and Subsidiaries
                                                      Geographic Segment Information
<CAPTION>
Dollars in Millions                                      
                                                                                       
                                           Transition Period                    Fiscal Year
                                           Ended December 31,                 Ended June 30,
                                                   1995                1995          1994             1993
<S>                                           <C>                 <C>           <C>              <C>
Identifiable Assets                         
U.S. and Canadian Grocery Products             $3,731.6            $3,917.5      $1,999.4         $1,877.3
Europe                                            222.7               255.0         576.5            562.9
Latin America and Pacific                         409.6               369.9         209.4            182.4
International Grocery Products                    632.3               624.9         785.9            745.3
Total Operating Businesses                      4,363.9             4,542.4       2,785.3          2,622.6
Corporate(a)                                      256.5               284.5         258.0            193.3
Total Assets                                   $4,620.4            $4,826.9      $3,043.3         $2,815.9
                                                                       
Capital Expenditures                                                   
U.S. and Canadian Grocery Products             $  117.3            $  193.1      $  123.9         $  107.2
International Grocery Products                     27.7                69.6          51.2             65.1
Total Operating Businesses                        145.0               262.7         175.1            172.3
Corporate                                            --                12.8            --               --
Total Capital Expenditures                     $  145.0            $  275.5      $  175.1         $  172.3

Depreciation and Amortization
U.S. and Canadian Grocery Products             $   86.4            $  155.3      $  131.6         $  117.6
International Grocery Products                     16.3                35.0          38.5             38.2
Total Operating Businesses                        102.7               190.3         170.1            155.8
Corporate                                           0.5                 1.1           1.1              1.1
Total Depreciation and Amortization            $  103.2            $  191.4      $  171.2         $  156.9

<FN>
(a)Includes corporate cash and cash equivalents, certain other current assets,
property and miscellaneous other assets.

45

                                                       The Quaker Oats Company and Subsidiaries
                                                           Five-Year Selected Financial Data
<CAPTION>
                                                                                      Dollars in Millions (Except Per Share Data)

                                       Transition          Prior                    
                                      Period Ended      Period Ended                             Fiscal Year
                                      December 31,   Ended December 31,                          Ended June 30,
                                                                        
                                              1995              1994         1995        1994        1993         1992       1991
                                                          (unaudited)                     
<S>                                      <C>              <C>           <C>         <C>         <C>          <C>        <C>
Operating Results(a)(b)(c)(d)(e)(f)      
Net sales                                 $ 2,733.1        $ 3,144.3     $6,365.2    $5,955.0    $5,730.6     $5,576.4   $5,491.2
Gross profit                                1,203.8          1,527.9      2,983.7     3,028.8     2,860.6      2,745.3    2,652.7
Income from continuing operations                                                         
   before income taxes and cumulative         
   effect of accounting changes                25.6            165.0      1,359.9       378.7       467.6        421.5      411.5
Provision for income taxes                     11.9             69.2        553.8       147.2       180.8        173.9      175.7
Income from continuing operations                                                        
   before cumulative effect
   of accounting changes                       13.7             95.8        806.1       231.5       286.8        247.6      235.8
Loss from discontinued operations -
   net of tax                                    --               --           --          --          --           --      (30.0)
Cumulative effect of accounting                                                
   changes - net of tax                          --             (4.1)        (4.1)         --      (115.5)          --         --
Net income                                $    13.7        $    91.7     $  802.0    $  231.5    $  171.3     $  247.6   $  205.8
Per common share:                                                   
Income from continuing operations                                                        
   before cumulative effect        
   of accounting changes                  $    0.09        $    0.70     $   6.00    $   1.68    $   1.96     $   1.63   $   1.53
Loss from discontinued operations                --               --           --          --          --           --      (0.20)
Cumulative effect of accounting                                                                                         
   changes                                       --            (0.03)       (0.03)         --       (0.79)          --         --
Net income                                $    0.09        $    0.67     $   5.97    $   1.68    $   1.17     $   1.63   $   1.33
Dividends declared:                                                 
Common stock                              $    75.7        $    75.7     $  150.8    $  140.6    $  136.1     $  128.6   $  118.7
Per common share                          $    0.57        $    0.57     $   1.14    $   1.06    $   0.96     $   0.86   $   0.78
Convertible preferred and
   redeemable preference stock            $     2.0        $     2.0     $    4.0    $    4.0    $    4.2     $    4.2   $    4.3
Average number of common shares
   outstanding (in thousands)               134,355          133,567      133,763     135,236     143,948      149,762    151,808



<FN>
(a)The 1995 transition period results include pretax restructuring charges of
$40.8 million, or $.18 per share, for the Snapple beverage supply  chain cost
reductions and for realignment activities in Europe and Asia/Pacific.

(b)Fiscal 1995 results include pretax gains of $1.17 billion, or $5.20 per share,
for business divestitures and pretax restructuring charges of $76.5 million, or
$.35 per share, for cost-reduction and realignment activities.

(c)Fiscal 1994 results include pretax restructuring charges of $118.4 million, or
$.55  per  share, for work force reductions, plant consolidations  and  product
discontinuations and a pretax gain of $9.8 million, or $.07 per share, for  the
sale of a business in Venezuela.

(d)See  Management's  Discussion and Analysis for further  discussion  of  gains  on
divestitures  and  restructuring charges from fiscal  1993  through  the  transition
period.

(e)See Notes 1, 13 and 17 to the consolidated financial statements for discussion
of the fiscal 1995 and fiscal 1993 accounting changes.

(f)Per  share data and average number of common shares outstanding reflect  the
fiscal 1995 two-for-one stock split-up.
                                       
46

                                      The Quaker Oats Company and Subsidiaries
                                          Five-Year Selected Financial Data
<CAPTION>
Dollars in Millions (Except Per Share Data)

                                 Transition Period                             Fiscal Year
                                 Ended December 31,                           Ended June 30,
                                          1995         1995         1994           1993       1992        1991
<S>                                   <C>          <C>          <C>           <C>        <C>         <C>
Financial Statistics                                                           
                                      
Current ratio                               0.6          0.7          1.0           1.0        1.2         1.3
Working capital                        $ (621.6)    $ (496.3)    $   (5.5)     $  (37.5)   $ 168.7    $  317.8
Property, plant and equipment               
   - net                               $1,167.8     $1,113.4     $1,214.2      $1,228.2   $1,273.3    $1,232.7
Depreciation expense                   $   59.2     $  125.4     $  133.3      $  129.9   $  129.7    $  125.2
Total assets                           $4,620.4     $4,826.9     $3,043.3      $2,815.9   $3,039.9    $3,060.5
                                                                    
Long-term debt                         $1,051.8     $1,103.1     $  759.5      $  632.6   $  688.7    $  701.2 
Convertible preferred stock                                              
   (net of deferred compensation                                          
    and redeemable preference                             
    stock                              $   17.7     $   18.8     $   15.3      $   11.4   $    7.9    $    4.8
Common shareholders' equity            $1,079.3     $1,128.8     $  445.8      $  551.1   $  842.1    $  901.0
Net cash provided by                                          
   operating activities                $   84.3     $  475.5     $  450.8      $  558.2   $  581.3    $  543.2 
Operating return on assets (a)             2.4%(b)     42.3%        19.9%         21.1%      18.9%       18.8%
Gross profit as a percentage        
   of sales                               44.0%        46.9%        50.9%         49.9%      49.2%       48.3%
Advertising and merchandising                                                    
   as a percentage of sales               24.1%        26.3%        26.6%         25.7%      26.0%       25.6%
Income from continuing operations                                             
   before cumulative effect of                                                  
   accounting changes as a      
   percentage of sales                     0.5%        12.7%         3.9%          5.0%       4.4%        4.3%
                                                                    
Total debt-to-total capitalization        
   ratio(c)                               61.7%        59.0%        68.8%         59.0%      48.7%       47.4%
Common dividends as a percentage                                              
   of income available for common                                             
   shares (excluding cumulative
   effect of accounting changes)         633.3%        19.0%        63.1%          48.9%     52.9%       58.9%

Number of common shareholders           30,353        29,148       28,197         33,154    33,580      33,603
                                    
Number of employees worldwide           16,100        17,300       20,000         20,200    21,100       20,900
Market price range of common stock                
                         -- High(d)    $37 3/8       $42 1/2       $41           $38 1/2   $37 7/8     $32 7/16
                         -- Low(d)     $30 3/4       $29 3/4       $30 15/16     $28 1/16  $25 1/8     $20 7/8
<FN>                                   
(a)Operating income divided by average identifiable assets of U.S. and
Canadian and International Grocery Products.
                                       
(b)Transition period reflects only six months of results.
                                       
(c)Total debt divided by total debt plus total shareholders' equity
including convertible preferred stock (net of deferred compensation) and
redeemable preference stock.
                                       
(d)Per share data reflect the fiscal 1995 two-for-one stock split-up.

47

</TABLE>