Calculate the ratio of depreciation and amortization

Question

        

Answer 1

This assignment is going to reveal about to financial statement effects of depreciation methods answer the subsequent questions using data from the Campbell Soup Company annual report in the appendix: Required: a. Discover the discussion of Property, Plant, and Equipment and depreciation methods used by Campbell's on page 715. Explain why the particular method is utilized for the purpose illustrated. What technique do you think the company uses for income tax purposes? b. Determine the ratio of the depreciation and amortization expense for 2011 reported on page 713 in the Consolidated Statements of Cash Flows to the total cost (not net book value) of plant assets reported in the schedule exposed on page 747.