Question

# Computing Asset Related Ratios Dick’s Sporting Goods included the following information in its year-end 2015 10-K....

Computing Asset Related Ratios

Dick’s Sporting Goods included the following information in its year-end 2015 10-K.

Sales............................................................. \$7,270,965

PPE, gross ........................................................ 2,665,314

Land ............................................................. —

Construction in progress ............................................. 124,400

Accumulated depreciation ............................................ 1,317,429

PPE, net, at year-end 2014 ........................................... 1,203,382

Depreciation expense................................................ 193,594

Required

a. Compute PPE turnover.

b. Compute the average useful life.

c. Compute the percentage used up of the PPE.

 Calculation of PPE net PPE Gross (A) \$2,665,314.00 Less: Accumulated depreciation (B) (\$1,317,429.00) PPE net (C=A+B) \$1,347,885.00 A PPE Turnover = Turnover/PPE Turonover (A) \$7,270,965 PPE Net (B) \$1,347,885 Turnover (A/B) 5.39 B Average useful life = PPE Gross/Depreciation expenses PPE Gross (A) \$2,665,314 Depreciation expenses (B) \$193,594 Average useful life (in Years) (C=A/B) 13.77 C Percentage used up of PPE = Accumulated depreciation/PPE gross block Accumulated depreciation (A) \$1,317,429.00 PPE Gross (B) \$2,665,314.00 Used % (A/B) 49.43%

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