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Using fixed asset disclosure to compare companies'/Fixed asset turnover and average age of depreciable assets The following PP & E information for fiscal year 2017

Using fixed asset disclosure to compare companies'/Fixed asset turnover and average age of depreciable assets

The following PP & E information for fiscal year 2017 is available:

Harley Davidson

Amazon

( in millions)

Walgreens

Net sales

$4,915

$107,006

$117,351

Historical cost

$3,285.3

$68,573

$22,935

Accumulated depreciation

2,317.5

19,707

8,600

Net PP & E

$ 967.8

$48,866

$14,335

Annual depreciation

222

11,478

1,718

Capital expenditures

206

11,995

1,325

Depreciation method

SL

SL

SL

Useful life- Buildings

30

20-40

20-50

Useful life- Furniture & Fixtures

5

3-10

3-20

Useful tife- IT Equipment

3-7

3-5

3-5

Required:

  1. Estimate the total useful life, age and remaining useful life for each company.
  2. Interpret the estimates. What items might effect comparisons across these companies
  3. Calculate and compare fixed asset turnover for each company

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