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Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 14ISBN: 978-1305653535Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
Edition 14ISBN: 978-1305653535 Exercise 9
FedEx and UPS: Fixed asset turnover ratio
FedEx Corporation and United Parcel Service, Inc. compete in the package delivery business. The major fixed assets for each business include aircraft, sorting and handling facilities, delivery vehicles, and information technology. The sales and average book value of fixed assets reported on recent financial statements for each company were as follows:
A. Compute the fixed asset turnover ratio for each company. (Round to one decimal place.)
B. Which company appears more efficient in using fixed assets?
C. Interpret the meaning of the ratio for the more efficient company.
FedEx Corporation and United Parcel Service, Inc. compete in the package delivery business. The major fixed assets for each business include aircraft, sorting and handling facilities, delivery vehicles, and information technology. The sales and average book value of fixed assets reported on recent financial statements for each company were as follows:
A. Compute the fixed asset turnover ratio for each company. (Round to one decimal place.)
B. Which company appears more efficient in using fixed assets?
C. Interpret the meaning of the ratio for the more efficient company.
Explanation
Verified
Verified
Fixed Asset Turnover Ratio
It is the ra...
Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
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