Bundle: Financial & Managerial Accounting, Loose-leaf Version, 14th + Working Papers For Warren/reeve/duchac's Corporate Financial Accounting, 14th + ... Financial & Managerial Accounting,
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Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 9, Problem 2ADM
Verizon: Fixed asset turnover ratio
Verizon Communications Inc. is a major telecommunications company in the United States. Two recent balance sheets for Verizon disclosed the following information regarding fixed assets:
| End of Year (in millions) | Beginning of Year (in millions) | |
| Property, plant, and equipment | $220,865 | $ 209,575 |
| (131,909) | (120,933) | |
| Property, plant, and equipment (net) | $ 88,956 | $ 88,642 |
Verizon’s revenue for the year was $120,550 million. Assume the fixed asset turnover ratio for the telecommunications industry averages approximately 1.1.
- A. Determine Verizon’s fixed asset turnover ratio. (Round to one decimal place.)
- B. Interpret this ratio with respect to the industry average.
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Fixed asset turnover ratio
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Chapter 9 Solutions
Bundle: Financial & Managerial Accounting, Loose-leaf Version, 14th + Working Papers For Warren/reeve/duchac's Corporate Financial Accounting, 14th + ... Financial & Managerial Accounting,
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