Johnson Matthey, the British specialty chemical company, had the following balances on its March 31, 2011, balance
Question:
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.
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
1 The average age of Johnson Mattheys assets can be determined by comparing the accumulated depreci...View the full answer
Introduction to Financial Accounting
ISBN: 978-0133251036
11th edition
Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick
