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Computing Asset Related RatiosDicks Sporting Goods included the following information in itsyear-end 2015 10-K...Computing...

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Accounting

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

Sales$6,882,077
PPE, gross2,598,648
Land
Construction in progress124,400
Accumulated depreciation1,317,429
PPE, net, at year-end 20141,203,382
Depreciation expense193,594


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%

Answer & Explanation Solved by verified expert
4.1 Ratings (769 Votes)

a. Computation of PPE Turnover:
PPE Turnover = Sales / Average PPE, Net
= $68,82,077 / $12,42,301
= 5.5
Average PPE, Net:
2015
PPE, Gross = $                               25,98,648
Less: Accumulated Depreciation = $                               13,17,429
PPE, Net = $                               12,81,219
2014
PPE, Net = $                               12,03,382
Average PPE, Net = (2014 PPE, Net + 2015 PPE, Net) / 2
= $                               12,42,301
b. Computation of Average useful life:
Average useful life = Depreciable cost of asset / Depreciable expense
= $24,74,248 / $193,594
= 12.8 years
Depreciable cost of asset:
Average PPE, Gross = $                               25,98,648
Less: Land = $                                              -  
Less: Construction in process = $                                 1,24,400
Depreciable cost of asset = $                               24,74,248
c. Computation of Percentage of used up of the PPE:
Percentage of used up of the PPE = Accumulated Depreciation / Depreciable cost of asset
= $13,17,429 / $24,74,248
= 53.2%

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In: AccountingComputing Asset Related RatiosDicks Sporting Goods included the following information in itsyear-end 2015 10-K...Computing Asset Related RatiosDicks Sporting Goods included the following information in itsyear-end 2015 10-KSales$6,882,077PPE, gross2,598,648LandConstruction in progress124,400Accumulated depreciation1,317,429PPE, net, at year-end 20141,203,382Depreciation expense193,594a. Compute PPE turnover.Round answer to one decimal place.Answerb. Compute the average useful life.Round answer to one decimal place.Answer yearsc. Compute the percentage used up of the PPE.Round answer to one decimal place (ex: 0.2345 = 23.5%)Answer%

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