a. Consider the level of the various PPE components. Does it seem likely that the company manufactures its own inventory? Answer b. Compute the estimated useful life of lululemon’s depreciable assets. Note: Round your answer to one decimal place (for example, enter 6.8 for 6.77555). Answer years c. Compute the estimated percent used up of lululemon’s depreciable assets. Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%). Answer
Estimating Useful Life and Percent Used Up
The property and equipment section of the lululemon athletica 2018 balance sheet follows.
| Property and Equipment (in thousands) | Feb. 3, 2019 | Jan. 28, 2018 |
|---|---|---|
| Land | $78,636 | $83,048 |
| Buildings | 38,030 | 39,278 |
| Leasehold improvements | 362,571 | 301,449 |
| Furniture and fixtures | 103,733 | 91,778 |
| Computer hardware | 69,542 | 61,734 |
| Computer software | 230,689 | 173,997 |
| Equipment and vehicles | 15,009 | 14,806 |
| Work in progress | 74,271 | 51,260 |
| Property and equipment, gross | 972,481 | 817,350 |
| (405,244) | (343,708) | |
| Property and equipment, net | $567,237 | $473,642 |
Depreciation expense related to property and equipment was $122.4 million and $108.00 million, for the years ended February 3, 2019, and January 28, 2018, respectively.
Required
a. Consider the level of the various PPE components. Does it seem likely that the company manufactures its own inventory? Answer
b. Compute the estimated useful life of lululemon’s
Note: Round your answer to one decimal place (for example, enter 6.8 for 6.77555).
Answer
years
c. Compute the estimated percent used up of lululemon’s depreciable assets.
Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).
Answer
%
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