Question
Using 2018 Annual Report for Dollar General pages 41-68 (it is public information and can be found online by googling. Chegg does not allow me
Using 2018 Annual Report for Dollar General pages 41-68 (it is public information and can be found online by googling. Chegg does not allow me to add the link)
Knowing the degree to which a companys assets are used up is of interest in forecasting future cash flows. If, for example, depreciable assets are 80% used up, we might anticipate a higher level of expenditures for PP&E to replace aging assets in the future. We also might expect that older assets are less efficient and will incur higher maintenance costs. If a company replaced all of its assets evenly each year, the percent used up ratio would be 50%.
The PP&E Percent Used Up is calculated as follows: Accumulated Depreciation/Depreciable Asset Cost*
*Depreciable assets exclude land and construction-in-progress, since these assets are not depreciated By what percent are Dollar Generals depreciable assets used up at 2/1/2019? Round as such: XX%.
c. 46%
a. 49%
d. 51%
b. 48%
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