FedEx Corporation and United Parcel Service, Inc. compete in the package delivery business.The major fixed assets for each business include aircraft, sorting and handling facili-ties, delivery vehicles, and information technology. The sales and average book value offixed assets reported on recent financial statements for each company were as follows:FedExUPSSales (in millions)$47,453$58,363Average book value of fixed assets (in millions)20,21318,317a. Compute the fixed asset turnover ratio for each company. Round to one decimal place.b. Which company appears more efficient in using fixed assets?Interpret the meaning of the ratio for the more efficient company.C.

a. Calculate the fixed asset turnover ratio:

Answered: FedEx Corporation and United Parcel…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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