Q2. Accounting Analysis (10 mark) The information regarding Amcor's depreciation in 2018 and 2019 is as follows. Item in $million) 2019 PP&E Cost 10,587.9 Accumulated Depreciation -4,909.3 Depreciation Expense -1,670.0 Impairment -10.6 Net PP&E 5,668.0 (1) Complete the below table to compute the asset cost-to-depreciation expense ratio. (4 mark) 2019 Total depreciation expense Asset cost to depreciation expense ratio (2) Suppose Amcor uses straight-line deprecation schedule and assumes zero residual asset value, how do we interpret asset cost-to depreciation expense ratio? (2 mark) (3) As analyst, you believe Amcor's recognition of deprecation expenses is too conservative and estimate an additional $325 million of depreciation expense should be recognised. As such, you believe an adjustment needs to be applied on Amcors ROA. How do you apply the adjustment to compute the adjusted ROA and what is Amcor's adjusted ROA in 2019? Show your work. (4 mark) Q2. Accounting Analysis (10 mark) The information regarding Amcor's depreciation in 2018 and 2019 is as follows. Item in $million) 2019 PP&E Cost 10,587.9 Accumulated Depreciation -4,909.3 Depreciation Expense -1,670.0 Impairment -10.6 Net PP&E 5,668.0 (1) Complete the below table to compute the asset cost-to-depreciation expense ratio. (4 mark) 2019 Total depreciation expense Asset cost to depreciation expense ratio (2) Suppose Amcor uses straight-line deprecation schedule and assumes zero residual asset value, how do we interpret asset cost-to depreciation expense ratio? (2 mark) (3) As analyst, you believe Amcor's recognition of deprecation expenses is too conservative and estimate an additional $325 million of depreciation expense should be recognised. As such, you believe an adjustment needs to be applied on Amcors ROA. How do you apply the adjustment to compute the adjusted ROA and what is Amcor's adjusted ROA in 2019? Show your work. (4 mark)