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CONSOLIDATED BALANCE SHEETS ($ in millions) ASSETS Property and Equipment Land and buildings Leasehold improvements Fixtures and equipment Property under capital and finance leases Less accumulated depreciation Net property and equipment Current 1 $76 2,01 4,07 11 6,97 2,76 4,20

CONSOLIDATED BALANCE SHEETS ($ in millions) ASSETS Property and Equipment Land and buildings Leasehold improvements Fixtures and equipment Property under capital and finance leases Less accumulated depreciation Net property and equipment Current 1 $76 2,01 4,07 11 6,97 2,76 4,20

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Fausett Electronics, Incorporated, headquartered in Richfield, Minnesota, is one of the leading consumer electronics retailers, operating more than 1,000 stores across the globe. The following was reported in a recent annual report: CONSOLIDATED BALANCE SHEETS ($ in millions) ASSETS Property and Equipment Land and buildings Leasehold improvements Fixtures and equipment Property under capital and finance leases Less accumulated depreciation. Net property and equipment a. Earnings per share. b. Fixed asset turnover. C. Current ratio d. Return on assets. Current Year $763 2,017 4,075 115 6,970 2,768 4,202 Prior Year $718 1,737 3,055 55 5,565 2,284 3,281 2. Assume that Fausett Electronics failed to record depreciation during the current year. Indicate the effect of the error (.e., overstated or understated) on the following ratios:
Transcribed Image Text:Fausett Electronics, Incorporated, headquartered in Richfield, Minnesota, is one of the leading consumer electronics retailers, operating more than 1,000 stores across the globe. The following was reported in a recent annual report: CONSOLIDATED BALANCE SHEETS ($ in millions) ASSETS Property and Equipment Land and buildings Leasehold improvements Fixtures and equipment Property under capital and finance leases Less accumulated depreciation. Net property and equipment a. Earnings per share. b. Fixed asset turnover. C. Current ratio d. Return on assets. Current Year $763 2,017 4,075 115 6,970 2,768 4,202 Prior Year $718 1,737 3,055 55 5,565 2,284 3,281 2. Assume that Fausett Electronics failed to record depreciation during the current year. Indicate the effect of the error (.e., overstated or understated) on the following ratios:
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