Chapter 10, Problem 10.17BYP

(1)

To determine

Plant, property, and equipment refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue. Example for property is land, example for plant is building, and example for equipment is machines.

Intangible Assets: These are the long-term assets having no physical existence. However, the benefits provided by these assets are used by the company for a long period of time. Example: Patent, Trademark, Goodwill, Copyrights. These intangible assets represent rights.

To identify: The categories of property, plant, and equipment and intangible assets, which are reported by Incorporation P in its February 2, 2014 balance sheet.

(2)

To determine

 To determine: The cash spent to purchase property and equipment in the fiscal year ended February 2, 2014, and describe how does this compare with purchases in previous year.

(3)

To determine

The fixed-asset turnover ratio of Incorporation P for the fiscal year ended February 2, 2014, and interprets the ratio.