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 facili- ties, 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: FedEx UPS Sales (in millions) $47,453 $58,363 Average book value of fixed assets (in millions) 20,213 18,317 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? Interpret the meaning of the ratio for the more efficient company. C.
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- Compare Fed Ex and UPS FedEx Corporation (FDX) and United Parcel Service, Inc. (UPS) 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.Three major segments of the transportation industry are motor carriers such as YRC Worldwide, railroads such as Union Pacific, and transportation logistics services such as C.H. Robinson Worldwide, Inc. Recent financial statement information for these three companies follows (in thousands): YRC Union Pacific C.H. Robinson Sales $5,092,000 $22,832,000 $16,631,172 Average total assets 1,601,300 58,476,500 4,331,623 a. Determine the asset turnover for all three companies. Round your answers to one decimal place. YRC fill in the blank 1 Union Pacific fill in the blank 2 C.H. Robinson fill in the blank 3 b. The ratio of sales to assets measures the number of sales dollars earned for each dollar of assets. The greater the number of sales dollars earned for every dollar of assets, the efficient a firm is in using assets.Three major segments of the transportation industry are motor carriers, such as Atlantic; railroads, such as Pacific; and transportation arrangement services, such as Mediterranean. Recent financial statement information for these three companies is shown as follows (in thousands of dollars): Atlantic Pacific Mediterranean Sales $3,736,923 $4,993,352 $1,909,372 Average total assets 795,090 1,314,040 561,580 a. Determine the asset turnover for all three companies. Round to one decimal place. Atlantic fill in the blank 1 Pacific fill in the blank 2 Mediterranean fill in the blank 3 b. The ratio of sales to assets measures the number of sales dollars earned for each dollar of assets. The greater the number of sales dollars earned for every dollar of assets, the efficient a firm is in using assets.
- Three major transportation segments and a major company within each segment are as follows: Segment Company Motor carriers YRC Worldwide Inc. (YRCW) Railroads Union Pacific Corporation (UNP) Transportation Arrangement C.H. Robinson Worldwide Inc. (CHRW) YRC Worldwide Union Pacific C.H. RobinsonWorldwide Sales $4,832 $21,813 $13,470 Average long-term operating assets 1,016 47,569 1,092 a. Determine the asset turnover for all three companies. Round to two decimal places. YRC Worldwide ???? Union Pacific ???? C.H. Robinson Worldwide ????Three major segments of the transportation industry are motor carriers such as Atlantic Worldwide, railroads such as Pacific, and transportation logistics services such as Mediterranean. Recent financial statement information for these three companies follows (in thousands): Atlantic Pacific Mediterranean Sales $1,602,930 $892,080 $2,142,260 Average total assets 763,300 1,274,400 498,200 a. Determine the asset turnover for all three companies. Round your answers to two decimal places. Atlantic fill in the blank 1 Pacific fill in the blank 2 Mediterranean fill in the blank 3Read the following case and compute the fixed asset turnover ratio.Explain in your own words how the result of the turnover ratio of both companies is interpreted.La Flor de Mayo and La Rosa del Monte compete in the moving service sector. The greatest assets of these companies are moving trucks, warehouses and technological equipment. Sales and the average book value of fixed assets (book value) reported in the latest financial statements of each company is as follows: La Flor de Mayo La Rosa del Monte Sales (in millions) $12,320 $15,500 Average book value of fixed assets (in millions) $7,000 $8,300
- Nashs Construction & Paving expanded its business by purchasing Alcott Maintenance, a division that provides road maintenance services. The division was purchased three years ago for $3,227,000 and has been identified as a reporting unit. The net assets for the division including goodwill are as follows: Cash $239,000 Accounts Receivables 301,000 Inventory 838,000 Property, Plant & Equipment 1,019,000 Goodwill 1,193,000 Accounts Payable (120,000 ) Unearned Revenue (75,000 ) Net assets, at carrying amounts $3,395,000 The fair value of the Alcott Maintenance Division reporting unit as a whole is estimated to be $3,125,000. Management determines that the unit’s value in use is $3,231,000. Prepare any appropriate journal entries for goodwill impairment assuming that Nash Construction & Paving is reporting under ASPE. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.…Nashs Construction & Paving expanded its business by purchasing Alcott Maintenance, a division that provides road maintenance services. The division was purchased three years ago for $3,227,000 and has been identified as a reporting unit. The net assets for the division including goodwill are as follows: Cash $239,000 Accounts Receivables 301,000 Inventory 838,000 Property, Plant & Equipment 1,019,000 Goodwill 1,193,000 Accounts Payable (120,000 ) Unearned Revenue (75,000 ) Net assets, at carrying amounts $3,395,000 The fair value of the Alcott Maintenance Division reporting unit as a whole is estimated to be $3,125,000. Management determines that the unit’s value in use is $3,231,000. Prepare any appropriate journal entries for goodwill impairment assuming that Nash Construction & Paving is reporting under ASPE. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.…Marins Construction & Paving expanded its business by purchasing Alcott Maintenance, a division that provides road maintenance services. The division was purchased three years ago for $3,015,000 and has been identified as a reporting unit. The net assets for the division including goodwill are as follows: Cash $262,000 Accounts Receivables 323,000 Inventory 774,000 Property, Plant & Equipment 867,000 Goodwill 1,137,000 Accounts Payable (121,000) Unearned Revenue (70,000) Net assets, at carrying amounts $3,172,000 The fair value of the Alcott Maintenance Division reporting unit as a whole is estimated to be $2,887,000. Management determines that the unit’s value in use is $2,984,000. (a) Prepare any appropriate journal entries for goodwill impairment assuming that Marin Construction & Paving is reporting under ASPE. (If no entry is required, select "No Entry" for the account titles and enter 0 for the…
- ABC Co. provided the following:Administrative expenses 400,000Cost of sales 1,800,000Distribution costs 450,000Loss – exchange differences on translating foreign operations 100,000Finance costs 300,000Gains – cash flow hedges 50,000Gains on property revaluations 250,000Loss for the year from discontinued operations 90,000Other expenses 150,000Other income 110,000Gain – remeasurement of defined operations 270,000Sales 3,200,000Share of gain on property revaluation of associates 120,000Share of profits of associates 80,000Loss – available for sale financial assets 70,0001. Ignoring taxes, the amount reported in the profit or loss section for the year ended December 31, 2020 is2. Ignoring taxes, the amount reported in the other comprehensive income section for the year endedDecember 31, 2020 isAnalyze and compare CSX, Union Pacific, and YRC Worldwide CSX Corporation (CSX) and Union Pacific Corporation (UNP) are major railroads, operating primarily in the eastern and western portion of the United States, respectively. YRC Worldwide Inc. (YRCW) is one of the largest trucking companies in the United States. The sales and total assets (in millions) for a recent year for each company are as follows: a. Compute the asset turnover ratio for each company. Round to two decimal places. b. Which of the two railroad companies is more efficient in generating revenues from its assets? c. How does YRCs asset turnover ratio compare to the two railroads? Why?Last Resort Industries Inc. is a privately held diversified company with five separate divisions organized as investment centers. A condensed income statement for the Specialty Products Division for the past year, assuming no support department allocations, along with asset information is as follows: The manager of the Specialty Products Division was recently presented with the opportunity to add an additional product line, which would require invested assets of 14,400,000. A projected income statement for the new product line is as follows: The Specialty Products Division currently has 27,000,000 in invested assets, and Last Resort Industries Inc.s overall return on investment, including all divisions, is 10%. Each division manager is evaluated on the basis of divisional return on investment. A bonus is paid, in 8,000 increments, for each whole percentage point that the divisions return on investment exceeds the company average. The president is concerned that the manager of the Specialty Products Division rejected the addition of the new product line, even though all estimates indicated that the product line would be profitable and would increase overall company income. You have been asked to analyze the possible reasons the Specialty Products Division manager rejected the new product line. a. Determine the return on investment for the Specialty Products Division for the past year. b. Determine the Specialty Products Division managers bonus for the past year. c. Determine the estimated return on investment for the new product line. Round percentages to one decimal place and the investment turnover to two decimal places. d. Why might the manager of the Specialty Products Division decide to reject the new product line? Support your answer by determining the projected return on investment for 20Y6, assuming that the new product line was launched in the Specialty Products Division and 20Y6 actual operating results were similar to those of 20Y5. e. Suggest an alternative performance measure for motivating division managers to accept new investment opportunities that would increase the overall company income and return on investment.