Ross Ltd and Yang Ltd, two entities of roughly the same size, are both involved in the manufacture of dancing shoes. Each entity depreciates its PPE assets using the straight-line method. An investigation of their financial statements reveals the following information.

	Ross Ltd	Yang Ltd
Profit	560 000	900 000
Sales	10 300 000	12 600 000
Total assets (average)	4 480 000	3 750 000
PPE assets (average)	3 360 000	2 000 000
Accumulated depreciation	1 420 000	937 500
Depreciation expense	420 000	130 000

1) For each entity, calculate average age of PPE assets and average useful life (2 marks)

2) Comment on how to interpret these ratios (1 marks) Word limit: 100