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. RobinsonSales $4,832,400 $21,813,000 $13,476,084Average total assets 1,939,800 53,486,000 3,199,348a. Determine the asset turnover for all three companies. Round to one decimal place. b. Assume that the asset turnover for each company represents its respective industry segment. Interpret the differences in the asset turnover in terms of the operating characteristics of each of the respective segments.

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. RobinsonSales $4,832,400 $21,813,000 $13,476,084Average total assets 1,939,800 53,486,000 3,199,348a. Determine the asset turnover for all three companies. Round to one decimal place. b. Assume that the asset turnover for each company represents its respective industry segment. Interpret the differences in the asset turnover in terms of the operating characteristics of each of the respective segments.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 16E

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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.
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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.
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[The following information applies to the questions displayed below.] Summary information from the financial statements of two companies competing in the same industry follows. BarcoCompany KyanCompany BarcoCompany KyanCompany Data from the current year-end balance sheets Data from the current year’s income statement Assets Sales $ 770,000 $ 914,200 Cash $ 21,000 $ 34,000 Cost of goods sold 587,100 642,500 Accounts receivable, net 34,400 59,400 Interest expense 9,100 17,000 Merchandise inventory 84,940 132,500 Income tax expense 14,800 25,238 Prepaid expenses 5,400 7,350 Net income 159,000 229,462 Plant assets, net 310,000 307,400 Basic earnings per share 3.79 5.08 Total assets $ 455,740 $ 540,650 Cash dividends per share 3.82 4.01 Liabilities and Equity Beginning-of-year balance sheet data Current…
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Sunland Corporation is a diversified company that operates in five different industries: A, B, C, D, and E. The following information relating to each segment is available for 2021. A B C D E Sales revenue $39,900 $75,300 $573,800 $35,400 $55,100 Cost of goods sold 19,000 49,500 265,900 19,300 30,200 Operating expenses 10,100 40,500 233,700 11,900 18,300     Total expenses 29,100 90,000 499,600 31,200 48,500 Operating profit (loss) $10,800 $(14,700) $74,200 $4,200 $6,600 Identifiable assets $35,200 $79,900 $493,400 $66,300 $49,900 Sales of segments B and C included intersegment sales of $20,300 and $98,400, respectively. (a) Determine which of the segments are reportable based on the: Reportable Segment (1) Revenue test.                                                                       (2) Operating profit (loss) test.…
Bonita Corporation is a diversified company that operates in five different industries: A, B, C, D, and E. The following information relating to each segment is available for 2021. A B C D E Sales revenue $39,300 $74,500 $582,400 $35,000 $55,100 Cost of goods sold 19,300 50,600 267,500 18,800 29,900 Operating expenses 9,000 40,800 232,100 12,200 18,200     Total expenses 28,300 91,400 499,600 31,000 48,100 Operating profit (loss) $11,000 $(16,900) $82,800 $4,000 $7,000 Identifiable assets $35,700 $79,400 $502,100 $65,600 $49,100 Sales of segments B and C included intersegment sales of $20,200 and $99,600, respectively. Prepare the necessary disclosures required by GAAP. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) A B C Other Totals External Revenues $ $ $…
Pina Corporation is a diversified company that operates in five different industries: A, B, C, D, and E. The following information relating to each segment is available for 2021. A B C D E Sales revenue $39,500 $74,600 $570,500 $35,300 $55,000 Cost of goods sold 19,100 49,500 264,900 19,100 30,200 Operating expenses 10,200 40,600 235,700 12,100 17,800     Total expenses 29,300 90,100 500,600 31,200 48,000 Operating profit (loss) $10,200 $(15,500) $69,900 $4,100 $7,000 Identifiable assets $34,500 $81,600 $505,400 $65,400 $49,400 Sales of segments B and C included intersegment sales of $20,400 and $99,000, respectively. Prepare the necessary disclosures required by GAAP. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) A B C Other Totals External Revenues $ $ $ $ $…
Use this information for Train Corporation to answer the question that follow. The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31: RailsDivision LocomotiveDivision CorporateTotal Cost of goods sold $46,100       $30,900       Direct operating expenses 26,000       22,500       Sales 91,500       67,000       Interest expense $3,000       General overhead 18,700       Income tax 4,200       The income from operations for the Locomotive Division is a.$36,100 b.$44,500 c.$67,000 d.$13,600
Monty Corporation is a diversified company that operates in five different industries: A, B, C, D, and E. The following information relating to each segment is available for 2021. A B C D E Sales revenue $39,600 $76,200 $575,500 $34,400 $54,400 Cost of goods sold 19,100 49,600 267,500 19,300 30,300 Operating expenses 10,200 39,400 231,500 11,900 18,300     Total expenses 29,300 89,000 499,000 31,200 48,600 Operating profit (loss) $10,300 $(12,800) $76,500 $3,200 $5,800 Identifiable assets $35,400 $79,400 $509,700 $64,300 $50,300 Sales of segments B and C included intersegment sales of $20,200 and $101,700, respectively. Determine which of the segments are reportable based on the: Reportable Segment (1) Revenue test. (2) Operating profit (loss) test. (3) Identifiable assets test.
The following information was taken from the financial statements of Brandon's Motor Shop: Total current assets $  53,000 Property, plant, and equipment 6,000 Current liabilities 21,000 Long-term liabilities 4,000 Owner's equity 34,000 Beginning inventory 31,000 Ending inventory 33,000 Cost of goods sold 152,000 Net income 42,000 The current ratio for Brandon's Motor Shop is closest to