Johnson & Johnson, the world’s leading and most diversified healthcare corporation, serves its customers through specialized worldwide franchises. Each of its franchises consists of a number of companies throughout the world that focus on a particular health care market, such as surgical sutures, consumer pharmaceuticals, or contact lenses. Information related to its property, plant, and equipment in its 2009 annual report is shown in the notes to the financial statements below and on the next page.

Johnson & Johnson’s provided the following selected information in its 2009 cash flow statement.

Instructions
  (a) What was the cost of buildings and building equipment at the end of 2009?
  (b) Does Johnson & Johnson use a conservative or liberal method to depreciate its property, plant, and equipment?
  (c) What was the actual interest expense incurred by the company in 2009?
  (d) What is Johnson & Johnson’s free cash flow? From the information provided, comment on Johnson & Johnson’s financial flexibility.