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The property and equipment section of the lululemon athletica 2018 balance sheet follows. P6-43. Estimating Useful Life and Percent Used Up The property and equipment
The property and equipment section of the lululemon athletica 2018 balance sheet follows.
P6-43. Estimating Useful Life and Percent Used Up The property and equipment section of the lululemon athletica 2018 balance sheet follows. LO LU Property and Equipment (in thousands) Land. Buildings. Leasehold improvements. Furniture and fixtures Computer hardware Computer software. Equipment and vehicles Work in progress Property and equipment, gross Accumulated depreciation. Property and equipment, net. Feb. 3, 2019 $ 78,636 38,030 362,571 103,733 69,542 230,689 15,009 74,271 972,481 (405,244) $567,237 Jan. 28, 2018 $ 83,048 39,278 301,449 91,778 61,734 173,997 14,806 51,260 817,350 (343,708) $473,642 Depreciation expense related to property and equipment was $122.4 million and $108.0 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? Why or why not? b. What is meant by work in progress"? Explain how this item will be accounted for in the coming months at lululemon. c. Compute the estimated useful life of lululemon's depreciable assets. d. Compute the estimated percent used up of lululemon's depreciable assets. How do we interpret this figureStep by Step Solution
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