The 2013 financial statements for Leggett & Platt, Inc. report the following information:
Year ended December 31, 2013
(In millions) 2013 2012
Depreciation and amortization expense $ 90.1 $ 90.4
Property and equipment, net 574.6 572.8
Land 44.5 45.3
Accumulated depreciation and amortization 1,266.6 1,237.4
Please show the formula and the answer to a and b below.
a. By what percentage are the assets ‘used up’ at the year-end 2013? What implication does this ratio have for future cash flows at Leggett & Platt?
b. Estimate the useful life on average for the Leggett & Platt depreciable assets.