Chapter 8, Problem 1CP

1.

To determine

Determine the amount spent on property and equipment in fiscal year 2011 by the Company AE.

2.

To determine

Determine the typical estimated useful life of leasehold improvements for amortization purposes.

3.

To determine

Determine the original cost of fixtures and equipment held by the Company at the end of the most recent reporting year.

4.

To determine

Determine the amount of depreciation expense on property and equipment for the current year.

To determine

Compare the amount of depreciation expense on property and equipment for the current year to the change in accumulated depreciation from fiscal year ended 2011 to fiscal year ended 2012, and the reason behind the differences in these amounts.

5.

To determine

Determine the fixed asset turnover ratio of the Company for the fiscal year ended 2012.