Refer to the financial statements of Research In Motion in Appendix A to answer the following. 1.

Question:

Refer to the financial statements of Research In Motion in Appendix A to answer the following.

1. What percent of the original cost of RIM’s property, plant and equipment remains to be depreciated as of February 27, 2010, and at February 28, 2009? Assume these assets have no salvage value.

2. Over what length(s) of time is RIM depreciating its major categories of property, plant and equipment?

3. What is the change in total property, plant and equipment (before accumulated depreciation) for the year ended February 27, 2010? What is the amount of cash provided (used) by investing activities for property, plant and equipment for the year ended February 27, 2010? What is one possible explanation for the difference between these two amounts?

4. Compute its total asset turnover for the year ended February 27, 2010, and the year ended February 28, 2009. Assume total assets at March 1, 2008, are $5,511 ($ millions).

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important... Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.