Analyzing the Effects of Tangible Assets on Financial Statements American Airlines Group, Inc., reported the following...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66490b8eb4544_11866490b8e4fb9a.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66490b8f49743_11866490b8ee2b9b.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66490b8fd8613_11966490b8f7d23b.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66490b907cf97_12066490b90171b1.jpg)
Transcribed Image Text:
Analyzing the Effects of Tangible Assets on Financial Statements American Airlines Group, Inc., reported the following information in its annual 10-K reports for the years 2017 to 2020. Sales 2020 2019 2018 2017 18,030 47,599 46,323 44,327 Operating property and equipment, net 32,936 36,395 35,462 35,522 Accumulated depreciation 17,427 19,405 18,141 16,272 Operating property and equipment 48,890 $4,059 52,274 50,528 Amount includes flight equipment and ground property and equipment, but excludes equipment purchase deposits. a. Compute the PPE turnover for 2020, 2019, and 2018. Comment on the trend over time. PPE Turnover 2020 S 2019 $ 2018 S Numerator 0 / $ 0 / $ Denominator 0- b. Calculate the percentage depreciated of American's depreciable assets at the end of fiscal years 2020, 2019, and 2018. Comment on the trend over time. 2020 2019 % deprec 0% 0% 2018 0% Operating property and equipment, net 32,936 36,395 35,462 35,522 Accumulated depreciation 17,427 19,405 18,141 16,272 Operating property and equipment* 48,890 54,059 52,274 50,528 Amount includes flight equipment and ground property and equipment, but excludes equipment purchase deposits. a. Compute the PPE turnover for 2020, 2019, and 2018. Comment on the trend over time. PPE Turnover 2020 $ 2019 $ 2018 $ Numerator 0 / $ 0 / $ 0 / $ Denominator = 0- 0 The cost of equipment dropped in 2020 by a lower level than sales dropped. The cost of equipment dropped in 2020 by a higher level than sales dropped. d of fiscal years 2020, 2019, and 2018. Comment on the trend over time. The cost of equipment dropped in 2020 by the same level as sales dropped. 2020 2019 2018 deprec 0% 0% 0% Comparing 2020 to 2019: Operating property and equipment, net 32,936 36,395 35,462 35,522 Accumulated depreciation 17,427 19,405 18,141 16,272 Operating property and equipment 48,890 54,059 52,274 50,528 Amount includes flight equipment and ground property and equipment, but excludes equipment purchase deposits. a. Compute the PPE turnover for 2020, 2019, and 2018. Comment on the trend over time. PPE Turnover 2020 $ 2019 5 2018 5 Numerator 0/5 0 / $ 0/5 Denominator 0 0- b. Calculate the percentage depreciated of American's depreciable assets at the end of fiscal years 2020, 2019, and 2018, Comment on the trend over time. 2020 2019 2018 deprec 0% 0% Comparing 2020 to 2019 Assets held are significantly older in 2020 Asset held are significantly newer in 2020 Assets held are at a similar point in their useful lives Operating property and equipment, net 32,936 36,395 35,462 35,522 Accumulated depreciation 17,427 19,405 18,141 16,272 Operating property and equipment* 48,890 54,059 52,274 50,528 Amount includes flight equipment and ground property and equipment, but excludes equipment purchase deposits. a. Compute the PPE turnover for 2020, 2019, and 2018. Comment on the trend over time. PPE Turnover 2020 5 2019 $ 2018 $ Numerator Denominator 0 Accumulated depreciation Average operating property and equipment 0 Average operating property and equipment net Operating property and equipment Operating property and equipment net Sales b. Calculate the percentage depreciated of American's depreciable assets at the end of fiscal years 2020, 2019, and 2018. Comment on the trend over time. 2020 % deprec 0% 2019 2018 0% 0% Comparing 2020 to 2019 Analyzing the Effects of Tangible Assets on Financial Statements American Airlines Group, Inc., reported the following information in its annual 10-K reports for the years 2017 to 2020. Sales 2020 2019 2018 2017 18,030 47,599 46,323 44,327 Operating property and equipment, net 32,936 36,395 35,462 35,522 Accumulated depreciation 17,427 19,405 18,141 16,272 Operating property and equipment 48,890 $4,059 52,274 50,528 Amount includes flight equipment and ground property and equipment, but excludes equipment purchase deposits. a. Compute the PPE turnover for 2020, 2019, and 2018. Comment on the trend over time. PPE Turnover 2020 S 2019 $ 2018 S Numerator 0 / $ 0 / $ Denominator 0- b. Calculate the percentage depreciated of American's depreciable assets at the end of fiscal years 2020, 2019, and 2018. Comment on the trend over time. 2020 2019 % deprec 0% 0% 2018 0% Operating property and equipment, net 32,936 36,395 35,462 35,522 Accumulated depreciation 17,427 19,405 18,141 16,272 Operating property and equipment* 48,890 54,059 52,274 50,528 Amount includes flight equipment and ground property and equipment, but excludes equipment purchase deposits. a. Compute the PPE turnover for 2020, 2019, and 2018. Comment on the trend over time. PPE Turnover 2020 $ 2019 $ 2018 $ Numerator 0 / $ 0 / $ 0 / $ Denominator = 0- 0 The cost of equipment dropped in 2020 by a lower level than sales dropped. The cost of equipment dropped in 2020 by a higher level than sales dropped. d of fiscal years 2020, 2019, and 2018. Comment on the trend over time. The cost of equipment dropped in 2020 by the same level as sales dropped. 2020 2019 2018 deprec 0% 0% 0% Comparing 2020 to 2019: Operating property and equipment, net 32,936 36,395 35,462 35,522 Accumulated depreciation 17,427 19,405 18,141 16,272 Operating property and equipment 48,890 54,059 52,274 50,528 Amount includes flight equipment and ground property and equipment, but excludes equipment purchase deposits. a. Compute the PPE turnover for 2020, 2019, and 2018. Comment on the trend over time. PPE Turnover 2020 $ 2019 5 2018 5 Numerator 0/5 0 / $ 0/5 Denominator 0 0- b. Calculate the percentage depreciated of American's depreciable assets at the end of fiscal years 2020, 2019, and 2018, Comment on the trend over time. 2020 2019 2018 deprec 0% 0% Comparing 2020 to 2019 Assets held are significantly older in 2020 Asset held are significantly newer in 2020 Assets held are at a similar point in their useful lives Operating property and equipment, net 32,936 36,395 35,462 35,522 Accumulated depreciation 17,427 19,405 18,141 16,272 Operating property and equipment* 48,890 54,059 52,274 50,528 Amount includes flight equipment and ground property and equipment, but excludes equipment purchase deposits. a. Compute the PPE turnover for 2020, 2019, and 2018. Comment on the trend over time. PPE Turnover 2020 5 2019 $ 2018 $ Numerator Denominator 0 Accumulated depreciation Average operating property and equipment 0 Average operating property and equipment net Operating property and equipment Operating property and equipment net Sales b. Calculate the percentage depreciated of American's depreciable assets at the end of fiscal years 2020, 2019, and 2018. Comment on the trend over time. 2020 % deprec 0% 2019 2018 0% 0% Comparing 2020 to 2019
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Parker Plastic, Incorporated, manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Direct materials (plastic) Direct labor Variable...
-
1. Calculate the cost of each capital component, after-tax cost of debt, cost of preferred, and cost of equity with the DCF method and CAPM method. 2. What do you estimate the company?s WACC? Please...
-
Write a java program to display reverse of a sentence in a String? Example Input: Enter the String: This Is Java Class Output: sihT sI avaJ ssalC
-
Water is pumped out of a holding tank at a rate of 5 5e 0.12t liters/minute, where t is in minutes since the pump is started. If the holding tank contains 1000 liters of water when the pump is...
-
Should the costs associated with an uncompleted consulting project be classified as a work-in-process asset on the balance sheet, or should the cost be expensed on the income statement as a part of...
-
The water clock (clepsydra) shown in Fig. P3.101 is an ancient device for measuring time by the falling water level in a large glass container. The water slowly drains out through a small hole in the...
-
Explain the measurement and reporting of intangible assets. - Intangible assets are recorded at cost, which is any expenditure necessary to acquire the asset and prepare it for use. - If the...
-
Cayman Products manufactures and sells to wholesalers approximately 300,000 packages per year of underwater markers at $4 per package. Annual costs for the production and sale of this quantity are...
-
The radius of a sphere is increasing at a rate of 1.6 mm / s. How fast is the volume increasing when the radius is 3 mm? (Round your answer to two decimal places if required) mm / s:1 11A Let A be...
-
What competitive strategies is Crayola pursuing? How does digital technology support those strategies?
-
On August 18, 2011, Hewlett-Packard, a computer hardware manufacturer, announced that it would purchase Autonomy, a search and data analysis company. HP paid $11.1 billion for the acquisition,...
-
2. Andy Company applies the weighted-average method of process costing.The Molding Department reported the following information for March. PhysicalUnits Percent complete with respect to materials...
-
Choose five Indian companywhich fits to the concepts of : (a) Strategically Adrift; (b)Distracted (c) Capability Constrained (d)In the Game (e) Ready for Growth; and explain the reasons how and why...
-
6) While on Spring break visiting New Zealand, you encounter a little man with hairy feet, named Bilbo. He takes a liking to you and can not resist peppering you with questions about the world of...
-
Discuss the implementation of advanced land valuation methodologies, such as spatial hedonic pricing models and geostatistical analysis techniques, in assessing the economic feasibility and market...
-
The theoretical standard error of the sampling distribution of the sample mean is equal to: a. sigma (population standard deviation) b. sigma/ n c. sigma/(n-1) d. sigma/ ( square root of n)
-
Using Apple, demonstrate how the differentiation strategy can be well implemented.
-
What are three methods traditionally used for applying factory overhead to jobs? Discuss the application of each method.
-
Classifying fixed and variable costs Classify each of the following items of factory overhead as either a fixed or a variable cost. (Include any costs that you consider to be semi variable within the...
-
High-low methods Pine Mountain Company has accumulated the following data over a sixmonth period: Separate the indirect labor into its fixed and variable components, using the high-low method....
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App