Problem: Using Publically Available Financial Statements
Refer to the Lowe's 2011 10-K. You should have located these statements for previous assessment problems. Use these statements and your prior knowledge of accounting, supplemented by textbooks or other references of your choosing, including the NOTES to the financial statements found in the Lowe's 2011 10-K, to answer the following questions, which all refer to the fiscal year ending 2012. Indicate the source of each of your answers, including the page number from the Lowe's 2011 10-K:
1. What method of depreciation does the company use? Does the company use the same method for all fixed assets, or are different classes of assets depreciated differently?
2. What is the amount of accumulated depreciation and amortization at the end of the most recent reporting year?
3. For depreciation purposes, what is the estimated useful life of furniture and fixtures?
4. What was the original cost of leasehold improvements owned by the company at the end of the most recent reporting year?
5. What amount of depreciation and amortization was reported as expense for the most recent reporting year?
6. What is the company's fixed asset turnover ratio for the most recent year (2012)? What was it for the previous years of 2010 and 2011? What conclusion can you make from this?