CanWest Global Communications Corp is a diversified Canadian communications and
CanWest Global Communications Corp. is a diversified Canadian communications and media company, providing consumers with broadband cable television, high- speed Internet, home phone, telecommunications, and satellite direct- to- home services. CanWest was acquired by Shaw Communications Inc. in 2010. Selected data from a recent annual report are as follows (in millions of dollars):
Required:
1. Compute the cost of the property, plant, and equipment at the end of the current year. Explain your answer.
2. What is your best estimate of the average expected life of CanWest’s property, plant, and equipment? What was the approximate age of the property, plant, and equipment at the end of the current year? Assume that CanWest uses straight- line depreciation.
3. Compute the fixed asset turnover ratio for the current year. Explain your results.
4. Compute an estimate of the amortization expense of intangible assets with finite lives for the next year.
5. On the consolidated statement of cash flows, why are the depreciation and amortization amounts added to net earnings for the year?
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