EXERCISE 4–1 Refer to the financial statements of Colgate in Appendix A.

Required:

a. Compute the following analytical measures applied to Colgate for 2006.

(1) Average total life span of plant and equipment.

(2) Average age of plant and equipment.

(3) Average remaining life of plant and equipment.

b. Discuss the importance of these ratios for analysis of Colgate.