Please work C 8-40,on page 405and 406a)PPE turnover b) percentage depr c) depr expense d)journal entries

CASES AND PROJECTS C8-40. Interpreting and Reporting Property, Plant, and Equipment (PPE) Expenditures L04, 6 General Mills, Inc. is a global consumer foods company. The rm manufactures and sells a wide GenrvilEMing. Ino- 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 so- lutions, and healthy snacking. The following data are taken from the company's 2014 annual report. From the balance sheet: (S millions) May 25, 2014 May 26, 2013 Land, buildings, and equipment: Land ................................................... $ 106.9 $ 101.2 Buildings ............................................... 2,228.4 2,168.3 Buildings under capital lease ............................ 0.3 0.3 Equipment ............................................. 5,979.7 5,731.1 Equipment under capital lease ........................... 9.0 9.0 Capitalized software .................................... 468.0 427.9 Construction in progress ................................ 600.8 495.1 Total land, buildings, and equipment ..................... 9,393.1 8,932.9 Less accumulated depreciation ............................ (5,451.2) (5,054.8) Total ..................................................... $3,941.9 $3,878.1 From the income statement ($ millions): 2014 2013 Net sales .......................................................... $17,909.6 $17,774.1 R E Q U | R E D a. Compute the PPE turnover for 2014. Assuming an average PPE turnover of 4.0 for the com- pany's closest competitors, does General Mills appear to be capital intensive? [7. Calculate the percentage depreciated of General Mills' depreciable assets at the end of scal year 2014. What implications might the result suggest for the company's future cash ows? c. General Mills reports depreciation expense of approximately $585 million in 2014. Estimate the average useful life of its depreciable assets by dividing average depreciable assets by de- preciation expense. d. During 2014, General Mills purchased $664 million of land, buildings and equipment for cash. Create the necessary journal entries to reect the asset purchases and the year's deprecia- tion charge