Statements of Consolidated Shareholders' Equity
Automatic Data Processing, Inc. and Subsidiaries

(In thousands, except per share amounts)

	Common Stock
	Shares	Amount	Capital In Excess Of Par Value	Retained Earnings	Treasury Stock	Translation Adjustments
Balance, July 1, 1994	314,234	$31,424	$312,672	$1,883,423	($532,913)	($3,355)
Employee stock plans and related
tax benefits	--	--	43,498	--	39,384	--
Treasury stock acquired
(438 shares)	--	--	--	--	(13,146)	--
Acquisitions (2,956 shares)	--	--	(13,045)	(6,206)	37,225	--
Net earnings	--	--	--	394,830	--	--
Dividends ($.3125 per share)	--	--	--	(89,224)	--	--
Other transactions	--	--	5,072	15	(104)	7,065
Balance, June 30, 1995	314,234	31,424	348,197	2,182,838	(469,554)	3,710
Employee stock plans and related
tax benefits	--	--	68,286	--	37,080	--
Treasury stock acquired
(6,640 shares)	--	--	--	--	(245,224)	--
Debt conversion (42 shares)	42	4	1,459	--	--	--
Acquisitions (1,513 shares)	--	--	4,007	12,530	17,809	--
Net earnings	--	--	--	454,700	--	--
Dividends ($.3875 per share)	--	--	--	(112,116)	--	--
Other transactions	1	--	(1,486)	--	(345)	(17,973)
Balance, June 30, 1996	314,277	31,428	420,463	2,537,952	(660,234)	(14,263)
Employee stock plans and related
tax benefits	--	--	83,283	--	44,167	--
Treasury stock acquired
(3,166 shares)	--	--	--	--	(127,709)	--
Acquisitions (2,978 shares)	--	--	(35,390)	679	35,727	--
Debt conversion (629 shares)	11	1	13,139	--	10,162	--
Net earnings	--	--	--	513,500	--	--
Dividends ($.445 per share)	--	--	--	(129,814)	--	--
Other transactions	--	--	(1,003)	--	--	(61,523)
Balance, June 30, 1997	314,288	$31,429	$480,492	$2,922,317	($697,887)	($75,786)

See notes to consolidated financial statements.