Question: Johnson Matthey the British specialty chemical company had the following

Johnson Matthey, the British specialty chemical company, had the following balances on its March 31, 2011, balance sheet [£ (British pound) in millions]:
Tangible fixed assets, at cost ........ £1,755.0
Less: Accumulated depreciation ........ 847.3
Net tangible fixed assets .......... £ 907.7
Suppose that Johnson Matthey depreciates most of its tangible fixed assets over 15 years.
1. What is the approximate average age of Johnson Matthey’s tangible fixed assets?
2. Johnson Matthey invested £115.1 million in tangible fixed assets during the prior year. Using this information and your answer to part 1, explain whether Johnson Matthey is growing or depleting its supply of fixed assets.

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