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 a. Consider the level of the various PPE components. Does it seem likely that the company manufactures its own inventory? Answer 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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

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

a. Consider the level of the various PPE components. Does it seem likely that the company manufactures its own inventory? Answer

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

PreviousSave AnswersNext

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.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Property, Plant and Equipment

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions