The 2015 annual report of The Procter & Gamble Company (P&G) TA 2, 3, 4 is available at www.pginvestor.com. After reviewing P&G’s annual report, respond to the following questions:

a. What percentage of P&G’s total assets is represented by its net property, plant and equipment? What percentage of P&G’s total assets is represented by its net goodwill and other intangible assets? Which category of noncurrent assets is larger? Calculate the capital intensity ratio. (Recall that in Chapter 4, the capital intensity ratio was defined as the sum of fixed assets plus intangible assets divided by total assets.) Is P&G a capital-intensive company?

b. Calculate the fixed asset turnover ratio and the intangible asset turnover ratio. What do these ratios tell you about P&G’s operations?

c. How much depreciation expense and amortization expense was taken in 2014 and 2015? What depreciation method does P&G use? What is the relative age of P&G’s fixed assets (what percentage of the assets has been used up and what percentage remains available)?