Question
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:
- Estimate the total useful life, age and remaining useful life for each company.
- Interpret the estimates. What items might effect comparisons across these companies
- Calculate and compare fixed asset turnover for each company
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started