Refer to the financial statements for each of Danier Leather, Shoppers Drug Mart, and WestJet in Appendix II at the end of the textbook.

Required

Answer the following questions.

Part 1

The June 25, 2011, balance sheet for Danier Leather reports $15,061 (thousand) of PPE.

a. What does the $15,061 (thousand) represent (i.e., is it the cost of the PPE)?

b. Which generally accepted accounting principle (GAAP) requires that information in addition to the$15,061 (thousand) must be reported and where must it be reported?

c. What amount did Danier report as depreciation expense for the year ended June 25, 2011?

Part 2

a. Shoppers’ balance sheet reports $1,767,543 thousand of property and equipment at December 31, 2011. What percentage is this of its total assets?

b. WestJet’s balance sheet reports $1,911,227 thousand of property and equipment on the same date. What percentage is this of its total assets?

c. Why might WestJet’s property and equipment as a percentage of total assets be almost twice that of Shoppers? Hint: Review the asset section of each company’s balance sheet.