The following financial statement information is from BRN, Inc. BRN is a global company specializing in high-tech components for the automotive, space, and computer industries.

Property, plant, and equipment on the basis of cost (in millions)

1999 1998 Land $ 104 $ 104 Buildings 1,527 1,461 Machinery and equipment 3,925 3,555 5,556 5,120 Less: Accumulated depreciation 3,067 2,793 Total property, plant, and equipment 2,489 2,327 Other Information Sales revenue $9,087 $7,948 Required

a. Comment on the changes in the property, plant, and equipment accounts.

b. Calculate fixed asset turnover (1999 only) and the percentage of PPE depreciated (both years).

c. Comment on these results. Identify any managerial implications associated with these results.