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Adjusting PP&E Turnover for Right - of - Use Assets Five Below's financial statements report the following for fiscal year 1 ( FY 1 )
Adjusting PP&E Turnover for RightofUse Assets
Five Below's financial statements report the following for fiscal year FY through fiscal year FY
$ thousandsFYFYFYPP&E net$$$Rightofuse assets ROU netSalesNot included in PP&E
a Compute the PP&E turnover ratio for FY and FY
NumeratorDenominatorResultAnswer Average PPEPPE, end of yearPPE, beginning of yearSalesAnswer Average PPEPPE, end of yearPPE, beginning of yearSalesPPE TurnoverFYAnswer Answer FYAnswer Answer
b Adjust PP&E to include ROU assets. Then recompute PP&E turnover for FY and FY
NumeratorDenominatorResultFYAnswer Answer FYAnswer Answer
c Which of the following best describes the impact of the adjustment in part b to PP&E turnover?
Answer InconsequentialModerateSubstantial
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