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The 2011 financial statements for Leggett & Platt, Inc. report the following inf

ID: 2648179 • Letter: T

Question

The 2011 financial statements for Leggett & Platt, Inc. report the following information:

Year ended December 31,

2011

2010

(In millions)

Depreciation and amortization expense

$ 98.1

$ 103.0

Property and equipment, net

580.6

624.2

Land

  45.2

48.5

Accumulated depreciation and amortization

  1,193.2

1.173.9

(Be careful

Year ended December 31,

2011

2010

(In millions)

Depreciation and amortization expense

$ 98.1

$ 103.0

Property and equipment, net

580.6

624.2

Land

  45.2

48.5

Accumulated depreciation and amortization

  1,193.2

1.173.9

Explanation / Answer

Answer:

a. Assets Used up % = Net Assets / Gross Assets

Net Assets = 580.6

Gross Assets = Net Assets + Accumulated depreciation = 580.6 + 1193.2 = 1773.80

Hence Assets used up % = 580.6 / 1773.80

= 0.3273 = 32.73%