Use the Following Assets Section of Hu Corporation's Balance Sheets

question 163

Essay

Use the following Assets section of Hu Corporation's balance sheets for the years ended December 31, 2015 and
2014 to answer the questions that follow.
HU CORPORATION
Assets Section of Consolidated Balance Sheets in millions
at December 31,2015 2014
ASSETS Current Assets
$1,889 and $97
Hu Corporation recorded depreciation expense of $344 million for 2014.
-Refer to the information for Hu Corporation.
Required:
Calculate the following ratios for Hu for 2015.
A. Average life of property, plant, and equipment
B. Average age of property, plant, and equipment
C. What information do these ratios provide to investors and creditors?

---

Definitions:

Protists

A kingdom of mostly unicellular eukaryotic organisms that are not plants, animals, or fungi, including amoebas, algae, and plasmodium.

Asexual Reproduction

A mode of reproduction where offspring arise from a single organism, inheriting the genes of that parent only, without the involvement of gamete fusion.

Unicellular Organisms

Organisms made up of a single cell, capable of performing all necessary life functions independently.

Meiosis I

The first division in meiosis, a type of cell division that reduces the chromosome number by half and leads to the production of gametes or sexual spores.