a.

Compute PPE turnover for 2016 (Total revenue in 2016 is $4,129,359 thousand). Does the level of its PPE turnover suggest that Cabelas is capital intensive? (Hint: The median PPE turnover for all publicly traded companies is approximate 1.3.)

b.

Cabela'sreported depreciation expense of $150,163 thousand in 2016. How much of this related to Land? How much of this expense related to Construction in progress? Explain.

c.

Assuming that Cabela's uses straight-line depreciation, estimate the useful life of its depreciable PPE assets.

d.

By what percentage are Cabela's assets used up at year-end 2016? What implication does the assets-used-up ratio have for forecasting Cabela's cash flows?

Following are selected disclosures from Cabela's Inc. (an outdoor adventure superstore) Property and equipment consisted of the following at the years ended (in thousands) Depreciable in Years 2016 Land and improvements Buildings and improvements Furniture, fixtures and equipment Assets held under capital lease Property and equipment Less accumulated depreciation and amortization 2015 S 364,694 $ 325,576 1,181,704 834,656 12,979 2,354,915 7 to 40 3 to 15 Up to 30 1,311,941 905,739 12,979 2,595,353 (833,956) (707,183) 1,761,397 45,812 $1.807,209 1,647,732 163,570 $1.811.302 Construction in progress