Following are selected disclosures from Cabela's (an outdoor adventure superstore): PROPERTY AND EQUIPMENT (in thousands) Land...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Following are selected disclosures from Cabela's (an outdoor adventure superstore): PROPERTY AND EQUIPMENT (in thousands) Land and improvements Buildings and improvements Furniture, fixtures and equipment Assets held under capital lease Property and equipment Less accumulated depreciation and amortization Construction in progress Depreciable Life in Years Up to 20 7 to 40 3 to 15 Up to 30 2013 $216,826 780,116 643,394 15,611 1,655,947 (550,101) 1,105,846 181,699 $1,287,545 b. Do you believe that Cabela's balance sheet reflects all of the company's operating assets? 2012 $185,916 640,666 551,904 13,255 1,391,741 (473,847) 917,894 103,762 $1,021,656 Required: a. Compute the PPE turnover for 2013 (Total revenue in 2013 is $3,205,632 thousand). Does the level of its PPE turnover suggest that Cabela's is capital intensive? (Hint: The median PPE turnover for all publicly traded companies is approximately 1.3.) d. Assuming that Cabela's uses straight-line depreciation, estimate the useful life of its depreciable PPE assets. c. Cabela's reported depreciation expense of $93,407 thousand in 2013. How much of this related to Land and improvements? How much of this expense related to Construction in progress? Explain. e. By what percentage are Cabela's assets "used up" at year-end 2013? What implication does the assets-used-up ratio have for forecasting Cabela's cash flows? Following are selected disclosures from Cabela's (an outdoor adventure superstore): PROPERTY AND EQUIPMENT (in thousands) Land and improvements Buildings and improvements Furniture, fixtures and equipment Assets held under capital lease Property and equipment Less accumulated depreciation and amortization Construction in progress Depreciable Life in Years Up to 20 7 to 40 3 to 15 Up to 30 2013 $216,826 780,116 643,394 15,611 1,655,947 (550,101) 1,105,846 181,699 $1,287,545 b. Do you believe that Cabela's balance sheet reflects all of the company's operating assets? 2012 $185,916 640,666 551,904 13,255 1,391,741 (473,847) 917,894 103,762 $1,021,656 Required: a. Compute the PPE turnover for 2013 (Total revenue in 2013 is $3,205,632 thousand). Does the level of its PPE turnover suggest that Cabela's is capital intensive? (Hint: The median PPE turnover for all publicly traded companies is approximately 1.3.) d. Assuming that Cabela's uses straight-line depreciation, estimate the useful life of its depreciable PPE assets. c. Cabela's reported depreciation expense of $93,407 thousand in 2013. How much of this related to Land and improvements? How much of this expense related to Construction in progress? Explain. e. By what percentage are Cabela's assets "used up" at year-end 2013? What implication does the assets-used-up ratio have for forecasting Cabela's cash flows?
Expert Answer:
Answer rating: 100% (QA)
a To compute the Property Plant and Equipment PPE turnover for 2013 we can use the formula PPE turnover Revenue Average PPE Average PPE Beginning PPE Ending PPE 2 From the information provided we can ... View the full answer
Related Book For
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
Posted Date:
Students also viewed these accounting questions
-
Use the attached "words.txt" file to store the words along with their ranks in an AVL tree. Then provide the user the option to search for any word. If the word exists the program displays the rank...
-
In July 2002, Qwest, a telecommunications company based in Denver, Colorado, acknowledged that it had improperly recorded revenue for 2000, 2001, and 2002. The company restated its financial results...
-
In Chapter 11, we prepared a cash flow statement for Pure Water, Inc. Now, we will analyze Pure Waters financial statements using the tools we learned in this chapter. Following are the balance...
-
b) Calculate the Fault Level in MVA if a symmetrical bolted 3-phase fault occurs on the LV side of the 5MVA Transformer at 11kV c) The Tranformer impedance is 6% - Calculate the short circuit current.
-
In his 1905 paper (see the translation in Lo23), Einstein states; WE conclude that a balance-clock at the equator must go more slowly, by a very small amount, than a precisely similar clock situated...
-
The average daily amounts of time (in minutes) spent on Instagram In Exercises 4952, approximate the mean of the frequency distribution. Time Spent (in minutes) Frequency 0-29 9 30-59 23 60-89 12...
-
What kind of account is Sales Returns and Allowances? Where would it appear on the financial statements?
-
Carlton, Weber, and Stansbury share profits equally and have capital balances of $120,000, $70,000, and $80,000, respectively, as of December 31, 2014. Effective January 1, 2015, Stansbury has...
-
By focussing on "engagement", define the term and explain this term by making reference to the case study "Black Lives Matter" and discuss how it forms part of a broader social media communications...
-
In this mini-case, you will complete the test of details on accounts receivable for the 2019 audit of EarthWear Clothiers, Inc. The principal test of detail involves sending "confirmations" or...
-
Current assets for JC Inc. totalled $33,760, and the current ratio was 160. Assume that the following transactions were completed: (1) Purchased merchandise for $4,600 on short-term credit. (2)...
-
My ideal career is to become an accountant or accounting specialist. Wy is it interesting? When exploring job postings related to accounting, what knowledge and skills were listed that directly...
-
Bob inherit $50,000 and decides to deposit the entire amount into his retirement account. If he earn an 11% annual return on the investment, how much will he have in the account when he retire in 45...
-
Foluso has $240 in savings and is planning to add $40 each week. Breanna has $500 in savings and is planning to add $30 each week. Their plan is to wait until their savings are equal and then load up...
-
State the dual problem for the following, but do not solve it. Minimize wy +5y+6y3+7y4 Subject to: 2y+7y2 By3 y42-7 y+52 +6y3 y4212 y, 20, y2 20. y3 20. y420 Maximize z = x Subject to: 51 $5 s6 57...
-
The total fixed manufacturing overhead costs of Cay Company are $70,000, and the total variable selling costs are $50,000. Under variable costing, how should these costs be classified?
-
An organization has assigned an IT Security Professional to enhance the system and network and provide the best security measures. Based on the given scenario, answer the following questions: 01....
-
A sprinkler head malfunctions at midfield in an NFL football field. The puddle of water forms a circular pattern around the sprinkler head with a radius in yards that grows as a function of time, in...
-
Amiel Company reported sales revenue of $20.3 million and expenses of $11.1 million in 20X1, excluding the results of its 80%-owned subsidiary, Talia Company. Talia had $7.0 million of sales revenue...
-
On January 1, 20X1, Tango-In-The-Night, Inc., issued $75 million of bonds with an 8% coupon interest rate. The bonds mature in 10 years and pay interest semiannually on June 30 and December 31 of...
-
Terry Corporation reported fair values for its minority-passive equity investment portfolio at the last four year-ends as shown in the table below. The company did not buy or sell any investments in...
-
True or False. For an undamped system, the velocity leads the acceleration by \(\pi / 2\).
-
True or False. Coulomb damping can be called constant damping.
-
True or False. The motion diminishes to zero in both underdamped and overdamped cases.
Study smarter with the SolutionInn App