Property, Plant, and Equipment Ratio Analysis
The following financial statement information is from BRN, Inc. BRN is a global company specializing in high tech components for the automotive, space, and computer industries.
|
Property, plant, and equipment on the basis of cost (in millions) |
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|
1999 |
1998 |
|
|
Land |
$ 104 |
$ 104 |
|
Buildings |
1,527 |
1,461 |
|
Machinery and equipment |
3,925 |
3,555 |
|
Less: Accumulated depreciation |
5,556 |
5,120 |
|
Total property, plant, and equipment |
3,067 |
2,793 |
|
2,489 |
2,327 |
|
|
Other Information |
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|
Sales revenue |
$9,087 |
$7,948 |
Required
a. Comment on the changes in the property, plant, and equipment accounts.
b. Calculate fixed asset turnover (1999 only) and the percentage of PPE depreciated (both years).
c. Comment on these results. Identify any managerial implications associated with these results.