Companies in the tire manufacturing business use a lot of property, plant, and equipment. Tyrell Rubber and Tire Corporation and Maxwell Rubber and Tire Manufacturing are two of the leading manufacturers. In additiion, Maxwell also operates over 1,000 tire service center outlets. Tyrell Rubber & Tire Maxwell Rubber & Tire Sales $2,918 $15,585 Depreciation and depletion costs 185 950 Property, plant, and equipment (net of accumulated depreciation) 976 6,146 Total assets 2,633 16,982 Depreciation method Straight-line Straight-line Depletion method Units of production Units of production Estimated life of assets Buildings 10 to 40 years 3 to 45 years Machinery and equipment 2 to 14 years 3 to 40 years Net income $105 $875 Required a .Calculate depreciation costs as a percentage of sales for each company. b.Calculate property, plant, and equipment as a percentage of total assets for each company. c.Based only on the percentages calculated in Requirements a and b, which company appears to be using its assets most efficiently? d.Calculate the return-on-assets ratio for each company. Based on this ratio, which company appears to be using its assets most efficiently?
Companies in the tire manufacturing business use a lot of property, plant, and equipment. Tyrell Rubber and Tire Corporation and Maxwell Rubber and Tire Manufacturing are two of the leading manufacturers. In additiion, Maxwell also operates over 1,000 tire service center outlets. Tyrell Rubber & Tire Maxwell Rubber & Tire Sales $2,918 $15,585 Depreciation and depletion costs 185 950 Property, plant, and equipment (net of accumulated depreciation) 976 6,146 Total assets 2,633 16,982 Depreciation method Straight-line Straight-line Depletion method Units of production Units of production Estimated life of assets Buildings 10 to 40 years 3 to 45 years Machinery and equipment 2 to 14 years 3 to 40 years Net income $105 $875 Required a .Calculate depreciation costs as a percentage of sales for each company. b.Calculate property, plant, and equipment as a percentage of total assets for each company. c.Based only on the percentages calculated in Requirements a and b, which company appears to be using its assets most efficiently? d.Calculate the return-on-assets ratio for each company. Based on this ratio, which company appears to be using its assets most efficiently?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Companies in the tire manufacturing business use a lot of property, plant, and equipment. Tyrell Rubber and Tire Corporation and Maxwell Rubber and Tire Manufacturing are two of the leading manufacturers. In additiion, Maxwell also operates over 1,000 tire service center outlets.
Tyrell Rubber & Tire Maxwell Rubber & Tire
Sales $2,918 $15,585
Depreciation and depletion costs 185 950
Property, plant, and equipment (net of accumulated depreciation ) 976 6,146
Total assets 2,633 16,982
Depreciation method Straight-line Straight-line
Depletion method Units of production Units of production
Estimated life of assets
Buildings 10 to 40 years 3 to 45 years
Machinery and equipment 2 to 14 years 3 to 40 years
Net income $105 $875
Required
a .Calculate depreciation costs as a percentage of sales for each company.
b.Calculate property, plant, and equipment as a percentage of total assets for each company.
c.Based only on the percentages calculated in Requirements a and b, which company appears to be using its assets most efficiently?
d.Calculate the return-on-assets ratio for each company. Based on this ratio, which company appears to be using its assets most efficiently?
Transcribed Image Text:(Enter your answers as a percentage rounded to 1 decimal place (i.e., 0.123 should be entered as 12.3).)
a.
Depreciation expense
b. Property, plant, and equipment
C.
Which company appears to be using its assets most efficiently?
d-1. Return-on-assets ratio
d-2. Which company appears to be using its assets most efficiently?
Tyrell Rubber & Maxwell Rubber
Tire
& Tire
%
%
%
%
%
%
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
Expert Answers to Latest Homework Questions
Q: 65
Q: Francum Company has the following data: direct labor
$232,000, direct materials used $182,000, total…
Q: Lakeside Inc. estimated manufacturing overhead costs for 2014 at
$378,000, based on 180,000…
Q: Don't use chatgpt it chat gpt means downvote solve correctly
Q: Give me answer
Q: What happens when one have sex several times ,the permanent changes and the temporary changes on the…
Q: Opiu
Q: opuiui
Q: A job was budgeted to require 5 hours of labor per unit at
$11,00
per hour. The job consisted of…
Q: K
In a recent study on world happiness, participants were asked to evaluate their current lives on a…
Q: Here the code for the project that i have that i have addapted to the proposal that i made. I need…
Q: Mar IXL
IXL Causes of the Americar
Eixl.com
Quebec (1759)
Montreal (1760)
Ft. Frontenac (1758)
Ft.…
Q: Suppose the mean height in inches of all 9th grade students at one high school is
estimated. The…
Q: n War IXL
IXL Causes of the Americar
ixl.com
The map below shows the major British military…
Q: Answer fast
Q: ch and Indian War IXL
IXL Causes of the American
+
ixl.com/social-studies…
Q: A semi-infinite string x > 0 is forced to oscillate by a vertical displacement ŋ = a sin wt
of its…
Q: A population is governed by the nonlinear equation
x = x² - 3x3 +2.
Show that there is an…
Q: Solve it using formulas, no tables
correct anwer is P= £301.47
Q: Solve it Using formulas, no tables
i) P0= PV(10%)≈ £225,513.6
ii) i'≈ 0.0558 --> NPV(5%)=…
Q: 2. A 1.2 kg cart moving at 6.0 m/s [E] collides with a stationary 1.8 kg cart.
The head-on collision…