Estimating Useful Life and Percent Used UpThe property and equipment section of the lululemon athletica 2018 balance sheet follows.Property and Equipment (in thousands)Feb. 3, 2019Jan. 28, 2018Land$78,636$83,048Buildings38,03039,278Leasehold improvements362,571301,449Furniture and fixtures103,73391,778Computer hardware69,54261,734Computer software230,689173,997Equipment and vehicles15,00914,806Work in progress74,27151,260Property and equipment, gross972,481817,350Accumulated depreciation(405,244)(343,708)Property and equipment, net$567,237$473,642Depreciation expense related to property and equipment was $122.4 million and $108.00 million, for the years ended February 3, 2019, and January 28, 2018, respectively.Requiredc. Compute the estimated percent used up of lululemon’s depreciable assets.Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).Answer%

Accumulated depreciation is a contra asset account. It has a credit balance, it shows the cumulative…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Estimating Useful Life and Percent Used Up
The property and equipment section of the lululemon athletica 2018 balance sheet follows.

Property and Equipment (in thousands)	Feb. 3, 2019	Jan. 28, 2018
Land	$78,636	$83,048
Buildings	38,030	39,278
Leasehold improvements	362,571	301,449
Furniture and fixtures	103,733	91,778
Computer hardware	69,542	61,734
Computer software	230,689	173,997
Equipment and vehicles	15,009	14,806
Work in progress	74,271	51,260
Property and equipment, gross	972,481	817,350
Accumulated depreciation	(405,244)	(343,708)
Property and equipment, net	$567,237	$473,642

Depreciation expense related to property and equipment was $122.4 million and $108.00 million, for the years ended February 3, 2019, and January 28, 2018, respectively.

Required

c. Compute the estimated percent used up of lululemon’s depreciable assets.
Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).

Answer%

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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