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Module 5 Case Questions

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7 views

Module 5 Case Questions

Uploaded by

smasakwa
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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ACCY500 Accounting Measurement, Reporting and Control:

Module 5 Cases

Question 1: UnitedHealth Group – PPE

Use the financial statement excerpts for UnitedHealth Group and the information below
to answer the following questions:

1. How much did UnitedHealth Group originally pay for all the property and
equipment that it owned at December 31, 2022 (exclude capitalized software)?

2. Assume that UnitedHealth Group purchased property and equipment costing


$2,000 million during 2022. Also assume that UnitedHealth Group sold
property and equipment for $455 million in cash and that there were no
impairments.

a) How much did UnitedHealth Group originally pay for the property and
equipment that was sold?

b) At the time of sale, what was the accumulated depreciation on the property
and equipment that was sold?

c) What was the gain / loss from the property and equipment that was sold?
UnitedHealth Group
Notes to the Consolidated Financial Statements

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Question 2: Long-Term Assets
Please consider the balance sheet and cash flow statement for The Kroger Co. (Kroger)
below and answer the following questions:

Please make the following assumptions:


- There were no impairments of property, plant, and equipment during the fiscal
year 2022, which ended January 28, 2023.
- There were no additions or disposals of intangible assets.
- Some additions to property, plant, and equipment were not paid for in cash.

1. What is the net book value of Kroger’s property, plant, and equipment on January
28, 2023?

2. Kroger has disposed of some property, plant, and equipment during fiscal year
2022. The sale price of disposed items was fully collected by the end of the fiscal
year and Kroger recognized a gain of $40 million on the sale of these items.

a) What was the amount of accumulated depreciation and amortization associated


with the property, plant, and equipment disposed of during the fiscal year 2022?

b) What was the original acquisition cost of the property, plant, and equipment
disposed of during fiscal year 2022?

c) How did the sale of property, plant, and equipment affect Kroger’s cash flow
from operations? How did it affect Kroger’s total cash flow?

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d) What was the value of property, plant, and equipment acquisitions that Kroger
paid for in cash during fiscal year 2022?

e) What was the value of additions to property, plant, and equipment during
fiscal year 2022?

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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