Calculate the average useful life of ppe assets

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Question

Calculate average useful life, averagea ge of property, plant and equipment, and asset turnover ratio. For the year ended 31 January 2018, Beta Ltd reported the following information (in thousands): net sales $1663970, profit $21935, depreciation expense $6399.

The statement of financial position showed total assets of $609041 at the beginning of the year, and $515357 at the end of the year; property, plant and equipment of $105282 (cost) at the beginning of the year and $90861 (cost) at the end of the year; and accumulated depreciation at year-end of $38797.

Required

Calculate the following:

(a) average useful life of PPE assets.

(b) average age of PPE assets.

(c) asset turnover ratio.

Comment on how to interpret these ratios.

Reference no: EM132367161

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