Analyzing the Effects of Tangible Assets on Financial Statements American Airlines Group, Inc., reported the following information in its annual 10-K reports for the years 2017 to 2020. Sales 2020 2019 2018 2017 18,030 47,599 46,323 44,327 Operating property and equipment, net 32,936 36,395 35,462 35,522 Accumulated depreciation 17,427 19,405 18,141 16,272 Operating property and equipment 48,890 $4,059 52,274 50,528 Amount includes flight equipment and ground property and equipment, but excludes equipment purchase deposits. a. Compute the PPE turnover for 2020, 2019, and 2018. Comment on the trend over time. PPE Turnover 2020 S 2019 $ 2018 S Numerator 0 / $ 0 / $ Denominator 0- b. Calculate the percentage depreciated of American's depreciable assets at the end of fiscal years 2020, 2019, and 2018. Comment on the trend over time. 2020 2019 % deprec 0% 0% 2018 0% Operating property and equipment, net 32,936 36,395 35,462 35,522 Accumulated depreciation 17,427 19,405 18,141 16,272 Operating property and equipment* 48,890 54,059 52,274 50,528 Amount includes flight equipment and ground property and equipment, but excludes equipment purchase deposits. a. Compute the PPE turnover for 2020, 2019, and 2018. Comment on the trend over time. PPE Turnover 2020 $ 2019 $ 2018 $ Numerator 0 / $ 0 / $ 0 / $ Denominator = 0- 0 The cost of equipment dropped in 2020 by a lower level than sales dropped. The cost of equipment dropped in 2020 by a higher level than sales dropped. d of fiscal years 2020, 2019, and 2018. Comment on the trend over time. The cost of equipment dropped in 2020 by the same level as sales dropped. 2020 2019 2018 deprec 0% 0% 0% Comparing 2020 to 2019: Operating property and equipment, net 32,936 36,395 35,462 35,522 Accumulated depreciation 17,427 19,405 18,141 16,272 Operating property and equipment 48,890 54,059 52,274 50,528 Amount includes flight equipment and ground property and equipment, but excludes equipment purchase deposits. a. Compute the PPE turnover for 2020, 2019, and 2018. Comment on the trend over time. PPE Turnover 2020 $ 2019 5 2018 5 Numerator 0/5 0 / $ 0/5 Denominator 0 0- b. Calculate the percentage depreciated of American's depreciable assets at the end of fiscal years 2020, 2019, and 2018, Comment on the trend over time. 2020 2019 2018 deprec 0% 0% Comparing 2020 to 2019 Assets held are significantly older in 2020 Asset held are significantly newer in 2020 Assets held are at a similar point in their useful lives Operating property and equipment, net 32,936 36,395 35,462 35,522 Accumulated depreciation 17,427 19,405 18,141 16,272 Operating property and equipment* 48,890 54,059 52,274 50,528 Amount includes flight equipment and ground property and equipment, but excludes equipment purchase deposits. a. Compute the PPE turnover for 2020, 2019, and 2018. Comment on the trend over time. PPE Turnover 2020 5 2019 $ 2018 $ Numerator Denominator 0 Accumulated depreciation Average operating property and equipment 0 Average operating property and equipment net Operating property and equipment Operating property and equipment net Sales b. Calculate the percentage depreciated of American's depreciable assets at the end of fiscal years 2020, 2019, and 2018. Comment on the trend over time. 2020 % deprec 0% 2019 2018 0% 0% Comparing 2020 to 2019