The following data (in millions) were adapted from recent annual reports of United Parcel Service, Inc. (UPS). UPS provides delivery and freight services throughout the world. Vehicles Aircraft Land Buildings Equipment Construction in progress Less accumulated depreciation Year 2 book value Year 1 book value b. UPS appears to have expanded $ a. Compute the book value of the fixed assets for years 1 and 2. million Year 2 million $666,040 632,738 99,906 805,908 859,192 13,321 (845,871) Year 1 $386,303 499,530 86,585 606,096 852,531 ✓its operations in year 2 from purchases 6,660 (706,002) ✓of fixed assets. This is typical of rapidly ✓growing companies. ?

The following data (in millions) were adapted from recent annual reports of United Parcel Service, Inc. (UPS). UPS provides delivery and freight services throughout the world. Vehicles Aircraft Land Buildings Equipment Construction in progress Less accumulated depreciation Year 2 book value Year 1 book value b. UPS appears to have expanded $ a. Compute the book value of the fixed assets for years 1 and 2. million Year 2 million $666,040 632,738 99,906 805,908 859,192 13,321 (845,871) Year 1 $386,303 499,530 86,585 606,096 852,531 ✓its operations in year 2 from purchases 6,660 (706,002) ✓of fixed assets. This is typical of rapidly ✓growing companies. ?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 24CE

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The Home Depot reported the following data (in millions) in its recent financial statements: a. Determine the asset turnover for The Home Depot for Year 2 and Year 1. Round to two decimal places. b. What conclusions can be drawn concerning the trend in the ability of The Home Depot to effectively use its assets to generate sales?
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Consider the following situations and determine (1) which type of liability should be recognized (specific account), and (2) how much should be recognized in the current period (year). A. A business depreciates a building with a book value of $12,000, using straight-line depreciation, no salvage value, and a remaining useful life of six years. B. An organization has a line of credit with a supplier. The company purchases $35,500 worth of inventory on credit. Terms of purchase are 3/20, n/60. C. An employee earns $1,000 in pay and the employer withholds $46 for federal income tax. D. A customer pays $4,000 in advance for legal services. The lawyer has previously recognized 30% of the services as revenue. The remainder is outstanding.
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