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Computing Asset Related Ratios Dicks Sporting Goods included the following information in its year-end 2015 10-K...

Computing Asset Related Ratios
Dicks Sporting Goods included the following information in its year-end 2015 10-K

Sales $7,559,853
PPE, gross 2,731,980
Land
Construction in progress 124,400
Accumulated depreciation 1,317,429
PPE, net, at year-end 2014 1,203,382
Depreciation expense 193,594


a. Compute PPE turnover.
Round answer to one decimal place.
Answer



b. Compute the average useful life.
Round answer to one decimal place.
Answer

years


c. Compute the percentage used up of the PPE.
Round answer to one decimal place (ex: 0.2345 = 23.5%)
Answer

%

Solutions

Expert Solution

(a)
Sales $ 75,59,853
2015 PPE, Gross $ 27,31,980
Less: 2015 Accumulated depreciation $ 13,17,429
2015 PPE, Net $ 14,14,551
2014 PPE, Net $ 12,03,382
Average PPE, Net $ 13,08,967
PPE Turnover = Sales / Average PPE, Net = 5.8
($75,59,853 / $13,08,967
(b)
2015 PPE, Gross $ 27,31,980
Less: 2015 Land 0
Less: 2015 Construction in process $   1,24,400
Depreciable Asset cost $ 26,07,580
Depreciable Expense $   1,93,594
Average Useful Life =                             Depreciable Asset cost / Depreciable Expense = 13.5 years
($26,07,580 / $1,93,594)
(c)
Accumulated depreciation $ 13,17,429
Depreciable Asset cost $ 26,07,580
Percentage used up of the PPE = Accumulated depreciation / Depreciable Asset cost = 50.5%
($13,17,429 / $26,07,580)

ekkarill92 answered 1 year ago
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