Use the annual report of Carnival Corporation for the 2007 scal year to answer the following questions.

Question:

Use the annual report of Carnival for the 2007 ﬁscal year to answer the following questions. This information can be found on either the annual report or the SEC 10-K ﬁling at www.carnival.com by following the links to Investor Relations.
Required:
(a) Calculate and interpret the following ratios for Carnival for the ﬁscal year ending November 30, 2007.
(1) Average age of assets
(2) Average useful life of assets
(b) What is the capital spending to depreciation ratio?
Given the information provided (and not provided) in the annual report, what types of questions might you have about the calculation of this ratio?
(c) Does Carnival discuss the age of its assets? Is that age similar to the numbers you calculated? List some possible reasons for any differences.
(d) What depreciation method does Carnival use?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...