Statements of Shareholders' Equity

Automatic Data Processing, Inc. and Subsidiaries

(In thousands, except per share amounts)

 
                                                           Capital in 
                                            Common Stock    Excess of    Retained   Treasury 
                                          Shares    Amount  Par Value    Earnings      Stock

Balance, July 1, 1992                    157,117   $15,712  $304,381   $1,405,333   $428,698

Employee stock plans and related tax           _         _    12,378            _   (50,757)
benefits
Treasury stock acquired (1,714 shares)         _         _         _            _     82,510
Acquisition (348 shares)                       _         _   (9,050)      (2,218)    (9,050)
Net earnings                                   _         _         _      294,200          _
Dividends ($.475 per share)                    _         _         _     (67,184)          _
Other transactions                             _         _   (7,699)            4         --
                                                                                            

Balance, June 30, 1993                   157,117    15,712   300,010    1,630,135    451,401

Employee stock plans and related tax           _         _    23,699            _   (47,986)
benefits
Treasury stock acquired (2,579 shares)         _         _         _            _    129,389
Net earnings                                   _         _         _      329,320          _
Dividends ($.54 per share)                     _         _         _     (76,031)          _
Other transactions                             _         _     1,320          (1)        109
                                                                                            

Balance, June 30, 1994                   157,117    15,712   325,029    1,883,423    532,913

Employee stock plans and 
  related tax benefits                         _         _    43,498            _   (39,384)
Treasury stock acquired (219 shares)           _         _        --            _     13,146
Acquisitions (1,478 shares)                    _         _  (13,045)      (6,206)   (37,225)
Net earnings                                   _         _         _      394,830          _
Dividends ($.625 per share)                    _         _         _     (89,224)          _
Other transactions                             _         _    12,137           15        104
                                                                                            

Balance, June 30, 1995                   157,117   $15,712  $367,619   $2,182,838   $469,554

See notes to consolidated financial statements.