During 1998 Kettle Corporation reported net sales of ($ 2,500,000), net income of ($ 1,500,000), and depreciation

Question:

During 1998 Kettle Corporation reported net sales of $\$ 2,500,000$, net income of $\$ 1,500,000$, and depreciation expense of $\$ 150,000$. Its balance sheet reported total assets of $\$ 1,400,000$, plant assets of $\$ 800,000$, and accumulated depreciation-plant assets of $\$ 300,000$.

\section*{Instructions}

Calculate

(a) average useful life of plant assets,

(b) average age of plant assets, and

(c) asset turnover ratio.

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