Data analytics is the process of examining data sets in order to draw conclusions about the information they contain. If you haven’t completed any of the prior data analytics cases, follow the instructions listed in the Chapter 1 Data Analytics case to get set up. You will need to watch the videos referred to in the Chapters 1 - 3 Data Analytics cases. No additional videos are required for this case. All short training videos can be found here: https://www. tableau.com/learn/training#getting-started. 

In the Chapter 10 Data Analytics Case, you used Tableau to examine a data set and create calculations to compare two companies’ fixed-asset turnover. In this case you continue in your role as an analyst conducting introductory research into the relative merits of investing in one or both of these companies. This time you assess the companies’ accumulated depreciation to fixed assets ratio to determine if new assets are being employed or utilized. The accumulated depreciation to fixed assets ratio = accumulated depreciation / fixed assets. 

This ratio allows the investor or analyst to examine factors like the age of the assets and therefore their remaining useful life. A low ratio means that the assets have plenty of life left in them and should be able to be used for years to come. A high ratio means the opposite. Low metrics are not necessarily a good sign though. For example, a company with a very low ratio may be spending huge amounts of money replacing fixed assets too soon. So it’s useful to track this metric over time to detect patterns. A continuing increase in the company’s accumulated depreciation to fixed assets ratio can indicate that management is struggling to find the cash necessary to acquire new assets. 

Required: 

Use Tableau to calculate each company’s annual accumulated depreciation to fixed assets ratios in each year from 2012 to 2021. Assume both companies use the same depreciation method over the entire period. Based upon what you find, answer the following questions: 

1. Comparing the accumulated depreciation to fixed assets ratios over the first five years of the ten-year period, is Big Store’s accumulated depreciation to fixed assets ratio (a) generally increasing, (b) roughly the same, or (c) generally decreasing from year to year? 

2. Comparing the accumulated depreciation to fixed assets ratios over the second five years of the ten-year period, is Big Store’s accumulated depreciation to fixed assets ratio (a) generally increasing, (b) roughly the same, or (c) generally decreasing from year to year? 

3. Comparing the accumulated depreciation to fixed assets ratios over the first five years of the ten-year period, is Discount Goods’ accumulated depreciation to fixed assets ratio (a) generally increasing, (b) roughly the same, or (c) generally decreasing from year to year? 

4. Comparing the accumulated depreciation to fixed assets ratios over the second five years of the ten-year period, is Discount Goods’ accumulated depreciation to fixed assets ratio (a) generally increasing, (b) roughly the same, or (c) generally decreasing from year to year? 

5. Comparing the accumulated depreciation to fixed assets ratios over the entire ten-year period, which of the two companies appears to maintain fixed assets with longer remaining useful lives?