Chapter 8, Problem 8.2CP

Finding Financial Information

LO8-1, 8-2, 8-6 Refer to the financial statements of Urban Outfitters given in Appendix C at the end of this book.

Required:

For each question, answer it and indicate where you located the information to answer the question. (Hint: Use the notes to the financial statements for many of these questions.)

1. 1. What method of depreciation docs the company use?
2. 2. What is the amount of accumulated depreciation and amortization at the end of the most recent reporting year?
3. 3. For depreciation purposes, what is the estimated useful life of furniture and fixtures?
4. 4. What was the original cost of leasehold improvements owned by the company at the end of the most recent reporting year?
5. 5. What amount of depreciation and amortization was reported as expense for the most recent reporting year?
6. 6. What is the company's fixed asset turnover ratio (rounded to two decimal places) for the most recent year? What does it suggest?