Accounting
27th Edition
ISBN: 9781337272094
Author: WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher: Cengage Learning,
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Textbook Question
Chapter 10, Problem 10.26EX
Fixed asset turnover ratio
The following table shows the sales and average book value of fixed assets for three different companies from three different industries for a recent year:
Company (Industry) | Sales (in millions) | Average Book Value of Fixed Assets (in millions) |
Alphabet (Google) Inc. (Internet) | $74,989 | $26,450 |
Comcast Corporation (communications) | 74,510 | 32,309 |
Wal-Mart Stores, Inc. (retail) | 485,651 | 117,281 |
- a. For each company, determine the fixed asset turnover ratio. Round to one decimal place.
- b. Explain Comcast's fixed asset turnover ratio relative to the other two companies.
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Chapter 10 Solutions
Accounting
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