Question
Estimating Useful Life and Percent Used Up The property and equipment section of the lululemon athletica 2018 balance sheet follows. Property and Equipment (in thousands)
Estimating Useful Life and Percent Used Up The property and equipment section of the lululemon athletica 2018 balance sheet follows.
Property and Equipment (in thousands) | Feb. 3, 2019 | Jan. 28, 2018 |
---|---|---|
Land | $78,636 | $83,048 |
Buildings | 38,030 | 39,278 |
Leasehold improvements | 362,571 | 301,449 |
Furniture and fixtures | 103,733 | 91,778 |
Computer hardware | 69,542 | 61,734 |
Computer software | 230,689 | 173,997 |
Equipment and vehicles | 15,009 | 14,806 |
Work in progress | 74,271 | 51,260 |
Property and equipment, gross | 972,481 | 817,350 |
Accumulated depreciation | (405,244) | (343,708) |
Property and equipment, net | $567,237 | $473,642 |
Depreciation expense related to property and equipment was $122.4 million and $108.00 million, for the years ended February 3, 2019, and January 28, 2018, respectively. Required a. Consider the level of the various PPE components. Does it seem likely that the company manufactures its own inventory? AnswerYesNo
b. Compute the estimated useful life of lululemons depreciable assets. Note: Round your answer to one decimal place (for example, enter 6.8 for 6.77555). Answer years c. Compute the estimated percent used up of lululemons depreciable assets. Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%). Answer%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Lets tackle each question stepbystep Part a Consider the level of the various PPE components Does it ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started