The financial statements of P&G are presented in Appendix 5B. The company’s complete annual report, including the notes to the financial statements, can be accessed at the book’s companion website, www.wiley.com/college/kieso.

Instructions
Refer to P&G’s financial statements and the accompanying notes to answer the following questions.
  (a) What type of income statement format does P&G use? Indicate why this format might be used to present income statement information.
  (b) What are P&G’s primary revenue sources?
  (c) Compute P&G’s gross profit for each of the years 2009–2011. Explain why gross profit decreased in 2011.
  (d) Why does P&G make a distinction between operating and nonoperating revenue?
  (e) What financial ratios did P&G choose to report in its “Financial Summary” section covering the years 2001–2011?