Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Problem:
Following are selected footnote disclosures from Parson's (an outdoor adventure superstore) financial statements:
5. PROPERTY AND EQUIPMENT
Depreciable Life
in Years
2011
2010
Land and improvements
Up to 20
$169,839
$169,398
Buildings and improvements
7 to 40
549,793
500,193
Furniture, fixtures and equipment
3 to 15
516,323
444,948
Assets held under capital lease
Up to 30
14,363
Property and equipment
1,250,318
1,128,902
Less accumulated depreciation and amortization
(413,993)
(363,608)
836,325
765,294
Construction in progress
30,574
52,653
$866,899
$817,947
Required:
a. Compute the PPE turnover for 2011 (Total revenue in 2011 is $2,811,166 thousand). Does the level of its PPE turnover suggest that Parson's is capital intensive? (Hint: The median PPE turnover for all publicly traded companies is approximately 1.3.)
b. Do you believe that Parson's balance sheet reflects all of the company's operating assets?
c. Parson's reported depreciation expense of $71,343 thousand in 2011. How much of this related to Land and improvements? How much of this expense related to Construction in progress? Explain.
d. Assuming that Parson's uses straight-line depreciation, estimate the useful life of its depreciable PPE assets.
Summary of problem:
This question is from Finance as well as it deals with questions about a company whose PPE turnover needs to be computed. The operating assets being reflected in the balance sheet as well as determining the depreciation of the PPE assets.
explain how analysis of financial statements is used to evaluate a companys liabilities both existing and
Global Conglomerate Corporation Income Statement for 2012 and 2011 Income Statement Year Ended December 31 (in $ million),2012 2011Total sales 186.7 176.1Cost of sales (153.4) (147.3)
Compute the value of this stock price in five years. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Consider a project with free cash flows in one year of $90,000 in a weak economy or $117,000 in a strong economy, with each outcome being equally likely.
cite and briefly discuss six factors that can be especially difficult to quantify for inclusion in a capital budgeting
suggest potential benefits of domestic securities markets to those investing in the foreign securities markets and give a specific example
conduct research that supports your answers to the following questionsbull address the followingo what are the
Chocolate corporation convertible debentures were issued at their $1,000 par value in 2007. At any time prior to maturity on February 1, 2027,
Calculation of Computation of projected Cash flows, NPV on Salvage Value Change & Sales (Units) Change using Graphs.
What are some differences in the analysis for a replacement project versus that for a new expansion project?
Farris estimates that it will collect 30% in the month of sale, 50% in the month after the sale, and 18% in the second month following the sale. Two percent of all sales are estimated to be bad debts. How much are Farris Co.'s budgeted cash receip..
joe won a settlement that will pay him 11000 at the end of each year for the next ten years. if market interest rates
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd