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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 38,030 39,278 362,571 301,449 103,733 91,778 69,542 61,734 230,689 173,997 15,009 14,806 74,271 51,260 972,481 817,350 (405,244) (343,708) $567,237 $473,642 Buildings Leasehold improvements Furniture and fixtures Computer hardware Computer software Equipment and vehicles Work in progress Property and equipment, gross Accumulated depreciation Property and equipment, net 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 a. Consider the level of the various PPE components. Does it seem likely that the company manufactures its own inventory? AnswerYesNo b. Compute the estimated useful life of lululemon's depreciable assets. Note: Round your answer to one decimal place (for example, enter 6.8 for 6.77555). Answer years 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%

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 38,030 39,278 362,571 301,449 103,733 91,778 69,542 61,734 230,689 173,997 15,009 14,806 74,271 51,260 972,481 817,350 (405,244) (343,708) $567,237 $473,642 Buildings Leasehold improvements Furniture and fixtures Computer hardware Computer software Equipment and vehicles Work in progress Property and equipment, gross Accumulated depreciation Property and equipment, net 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 a. Consider the level of the various PPE components. Does it seem likely that the company manufactures its own inventory? AnswerYesNo b. Compute the estimated useful life of lululemon's depreciable assets. Note: Round your answer to one decimal place (for example, enter 6.8 for 6.77555). Answer years 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%

FINANCIAL ACCOUNTING
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 38,030 39,278 362,571 103,733 Buildings Leasehold improvements Furniture and fixtures Computer hardware Computer software Equipment and vehicles Work in progress Property and equipment, gross Accumulated depreciation Property and equipment, net 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 a. Consider the level of the various PPE components. Does it seem likely that the company manufactures its own inventory? AnswerYesNo 69,542 230,689 15,009 301,449 91,778 61,734 173,997 14,806 74,271 51,260 972,481 817,350 (405,244) (343,708) $567,237 $473,642 b. Compute the estimated useful life of lululemon's depreciable assets. Note: Round your answer to one decimal place (for example, enter 6.8 for 6.77555). Answer years 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%
Transcribed Image Text: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 38,030 39,278 362,571 103,733 Buildings Leasehold improvements Furniture and fixtures Computer hardware Computer software Equipment and vehicles Work in progress Property and equipment, gross Accumulated depreciation Property and equipment, net 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 a. Consider the level of the various PPE components. Does it seem likely that the company manufactures its own inventory? AnswerYesNo 69,542 230,689 15,009 301,449 91,778 61,734 173,997 14,806 74,271 51,260 972,481 817,350 (405,244) (343,708) $567,237 $473,642 b. Compute the estimated useful life of lululemon's depreciable assets. Note: Round your answer to one decimal place (for example, enter 6.8 for 6.77555). Answer years 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%
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