Question

Use the annual report of Carnival Corporation for the 2007 fiscal year to answer the following questions. This information can be found on either the annual report or the SEC 10-K filing at www.carnival.com by following the links to Investor Relations.
Required:
(a) Calculate and interpret the following ratios for Carnival for the fiscal year ending November 30, 2007.
(1) Average age of assets
(2) Average useful life of assets
(b) What is the capital spending to depreciation ratio?
Given the information provided (and not provided) in the annual report, what types of questions might you have about the calculation of this ratio?
(c) Does Carnival discuss the age of its assets? Is that age similar to the numbers you calculated? List some possible reasons for any differences.
(d) What depreciation method does Carnival use?


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  • CreatedMarch 27, 2015
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