Interpreting and Reporting Property, Plant, and Equipment $($PPE$)$ Expenditures $($FSET$)$

General Mills, Inc. $($the Company$),$ is a global consumer foods company. The $$rm manufactures and sells a wide range of branded products and is a major supplier to the foodservice and baking industries. The company$$s core product areas are ready$-$to$-$eat cereal, super$-$premium ice cream, convenient meal solutions, and healthy snacking. The following data are taken from the company$$s $2020$ annual report. From the balance sheet:

$($$ millions$)$ May $31,2020$ May $26,2019$

Equipment $$6,428\mathrm{.}0$ $$6,548\mathrm{.}3$

Buildings $2,412\mathrm{.}62,477\mathrm{.}2$

Capitalized software $668\mathrm{.}5631\mathrm{.}6$

Construction in progress $373\mathrm{.}5343\mathrm{.}8$

Land $66\mathrm{.}173\mathrm{.}6$

Equipment under finance lease $5\mathrm{.}85\mathrm{.}7$

Buildings under finance lease $0\mathrm{.}30\mathrm{.}3$

Total land, buildings, and equipment $9,954\mathrm{.}810,080\mathrm{.}5$

Less accumulated depreciation $(6,374\mathrm{.}2)(6,293\mathrm{.}3)$

Total $$3,580\mathrm{.}6$ $$3,787\mathrm{.}2$

From the income statement $($$ millions$)$:

$20202019$

Net sales $$17,626\mathrm{.}6$ $$16,865\mathrm{.}2$

a$.$ Compute the PPE turnover for $2020.$ Assuming an average PPE turnover of $4\mathrm{.}0$ for the company$$s closest competitors, does General Mills appear to be capital intensive?

b$.$ Calculate the percentage depreciated of the Company's depreciable assets at the end of $$scal year $2020.$

c$.$ The Company reported depreciation and amortization $($not reported separately$)$ expense of approximately $$594\mathrm{.}7$ million in $2020.$ Estimate the average useful life of its depreciable assets by dividing average depreciable assets by depreciation expense.

d$.$ During $2020,$ the Company purchased $$460\mathrm{.}8$ million of land, buildings, and equipment for cash. Use the $$nancial statement e$$ects template to re$$ect the asset purchases and the year$$s depreciation charge.

$$ Note: Use negative signs with your answers, when appropriate.

$$ Note: Select $"$N$/$A$"$ as your answer if a part of the accounting equation is not affected.Interpreting and Reporting Property, Plant, and Equipment $($PPE$)$ Expenditures $($FSET$)$

company's $2020$ annual report. From the balance sheet:

From the income statement $($ $ millions$)$:

REQUIRED

a$.$ Compute the PPE turnover for $2020.$ Assuming an average PPE turnover of $4\mathrm{.}0$ for the company's closest competitors, does General Mills appear to be capital intensive?

b$.$ Calculate the percentage depreciated of the Company's depreciable assets at the end of fiscal year $2020.$

d$.$ During $2020,$ the Company purchased $$460\mathrm{.}8$ million of land, buildings, and equipment for cash. Use the financial statement effects template to reflect the asset purchases and the year's depreciation charge.

Note: Use negative signs with your answers, when appropriate.

Note: Select $"$N$/$A$"$ as your answer if a part of the accounting equation is not affected.