<FedEx Corporation (FDX) and United Parcel Service, Inc. (UPS) compete in the package delivery business. Themajor fixed assets for each business include aircraft, sorting and handling facilities, delivery vehicles, and informationtechnology. The sales and average book value of fixed assets reported on recent financial statements for eachcompany were as follows:FedEx$83,959 $97,28734,680 32,865UPSSales (in millions)Average book value of fixed assets (in millions)a. Compute the fixed asset turnover ratio for each company. Round to one decimal place.FedEx:UPS:b. Which company appears more efficient in using fixed assets?c. Interpret the meaning of the fixed asset turnover ratio.

The fixed asset turnover ratio measures the efficiency with which a corporation uses its fixed…

FedEx UPS $83,959 $97,287 34,680 32,865 Sales (in millions) Average book value of fixed assets (in millions) a. Compute the fixed asset turnover ratio for each company. Round to one decimal place. FedEx:

FedEx UPS $83,959 $97,287 34,680 32,865 Sales (in millions) Average book value of fixed assets (in millions) a. Compute the fixed asset turnover ratio for each company. Round to one decimal place. FedEx:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Captain Kurt's Enterprises has a receivables turnover rate of 12.8, a payables turnover rate of…

A: The operating cycle is the average time it takes a company to convert its inventory into cash. It…

Q: 25 Income from Operations 26 Interest Expense 27 Income before Income Tax Expense 33 required number…

Q: QUESTION: TORRID PUBLISHERS ROMANCE HAS TOTAL RECEIVABLES OF $4,700.00, WHICH REPRESENTS 22.00 DAYS'…

A: Find Total SalesGiven:Total Receivables = $4,700Days' Sales Outstanding (DSO) = 22 daysFirst, we…

Q: Provide Answer

A: The operating cycle is a measure of the time it takes a company to convert its cash into inventory,…

Q: Calculate the total asset turnover (sales / total assets) for the firm below. Make sure you do NOT…

A: Total asset turnover ratio measures the value of the firm sales relative to the value of the total…

Q: Asset turnover A company reports the following: Sales $820,800 Average total assets (excluding…

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: the following information to complete the balance sheet below. Sales is 60 percent, and fixed asset…

A: The financial ratios are very important in analysing the financial health of the company and it…

Q: Average total assets (excluding long-term inve

A: The Asset turnover ratio compares the worth of a company's sales or revenues to the value of its…

Q: U.S. Steal has the following income statement data: Units Sold Total Variable Costs Fixed Costs…

A: Operating leverage is the ratio of contribution to the operating income.

Q: CALCULATE THE WEIGHTED AVERAGE COSTS OF CAPITAL Short-Term Liabilities: COST Suppliers 1,240,000.00…

A: Weighted Average Cost OF Capital (WACC) =E / (E + D) * Ke + D / (E + D) * Kd E = Equity Value D =…

Q: Briggs Company has operating income of $45,760, invested assets of $143,000, and sales of $457,600.…

A: Return on investment helps in measuring the efficiency of the amount invested in a particular…

Q: What are the annual sales for a firm with $805,853 in total liabilities, a total debt ratio of 0.84,…

A: Ratio analysis s helps to analyze the financial statements of the company. The management can make…

Q: Asset turnover A company reports the following: Sales $1,284,150 Average total assets (excluding…

A: Asset Turnover Ratio = Sales Average total assets

Q: A company reports the following: Sales $1,304,800 Average total assets (excluding long-term…

A: Formula: Asset turnover ratio = Sales / Average total assets

Q: These are the quotes from the spot market. Citigroup Credit Suisse Deutsche Bank ¥126/€ ¥108/$…

A: Triangular arbitrage is an arbitrage opportunity resulting from the pricing discrepancy of three…

Q: Accounts and notes receivable (net) 320,000 Inventories 700,000 Prepaid expenses 40,000 Accounts…

A: ''Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: accounts receivable turno ratio of a company is 2, annual credit sales IS $ nat is the average…

A: Given, Accounts receivable turnover = 2 Annual credit sales = $719550

Q: Calculate the current ratio. fill in the blank 1 2. Calculate the quick ratio (acid-test ratio).…

A: The calculation of Current Ratio and Quick Ratio ( Acid - test Ratio) is shown hereunder : Given,…

Q: Data pertaining to the current position of Lucroy Industries Inc. follow: Cash $430,000 Marketable…

A: Accounting Ratios: The ratios are computed using the financial statement of a company and they…

Q: What is the receivales turnover and what is the average collection period (days sales outstanding) ?

A: Information Provided: Credit sales = $10,640,000 Receivables = $1,520,000

Q: Briggs Company has income from operations of $24,255, invested assets of $99,000, and sales of…

A: Return on investment is the amount of return earned from the investment.

Q: Calculate the total asset turnover (sales / total assets) for the firm below. Do not convert to 2…

A: Ratio analysis can help with financial planning and forecasting. Businesses may forecast future…

Q: Asset turnover A company reports the following: Sales $1,189,650 Average total assets (excluding…

A: The assets turnover ratio tells about the efficiency of the business to use its assets to earn the…

Q: Calculate the sales margin, asset turnover, and ROA for the companies below: Average Capital Assets…

A: RETURN ON INVESTMENTReturn on investment is one of the profitability ratios which shows how much…

Q: Calculate the total asset turnover (sales / total assets) for the firm below. Make sure you do NOT…

A: Total asset turnover ratio measures the value of the firm sales relative to the value of the total…

Q: A company reports the following: Sales $10,975,200 Average total assets…

A: Asset turnover ratio = Sales/Average total assets

Q: Net Sales = $88,122 Total Assets = $189,100 Calculate Asset Turnover ( Round to nearest hundredth…

A: When actual or intangible goods, services, or assets are traded for money and include two or more…

Q: Number of days' sales in receivables

A: Number of days' sales in receivables = 365 days * ((Opening Accounts receivable + Closing Accounts…

Q: Compare the Solvency, Liquidity and Profitability for the two companies

A: Solvency of any company is the ability of the company to run its day to day operation. The solvency…

Q: b. In 20X2, sales increased to $5,890,000 and the assets for that year were as follows: Cash…

A: The ratio analysis helps to analyze the financial statements of the business on the basis of the…

Q: Use the following information to complete the balance sheet below. Sales are $8.7 million, capital…

A: Sales = s = $8.7 millionCapital Intensity Ratio = cir = 2Debt ratio = dr = 65%Fixed Assets Turnover…

Q: Margin, Turnover, Return on Investment Pelak Company had sales of $4,974,000, expenses of…

A: Operating income = Sales - expenses Margin = Operating income / Sales Turnover = Sales / Average…

Q: A company reports the following: Sales $1,069,000 Average total assets 534,500 Determine the asset…

A: · Ratio analysis used identify the business performance of the company.· It is used to…

Q: Fixed assets turnover: 2.5x Current ratio: 2.0x Gross profit margin on sales: (Sales - Cost of goods…

A: Financial statement analysis:Financial statement analysis refers to the financial measures and…

Q: If Blue Sky Company has prior year total assets of $7,557,962, current year total assets of…

A: Total asset turnover is a fiscal rate that measures a company's capability to induce cash from…

Q: iven the above information, calculate the net income. Enter the value in 2 decimal places, Sales…

A: Time interest earned ratio show the ability of company to pay interest on time and it is the ratio…

Q: Grove Corp. has revenues of $1,532,000 resulting in an operating income of $182,000. Average…

A: Revenue=$1,532,000 Operating income=$182,000 Average Investment in assets=$818,000 Increase in…

Q: Asset turnover A company reports the following: Sales $724,200 Average total assets 426,000…

A: The asset turnover ratio can be calculated by dividing the net sales value by the average of total…

Question

<
FedEx Corporation (FDX) and United Parcel Service, Inc. (UPS) compete in the package delivery business. The
major fixed assets for each business include aircraft, sorting and handling facilities, delivery vehicles, and information
technology. The sales and average book value of fixed assets reported on recent financial statements for each
company were as follows:
FedEx
$83,959 $97,287
34,680 32,865
UPS
Sales (in millions)
Average book value of fixed assets (in millions)
a. Compute the fixed asset turnover ratio for each company. Round to one decimal place.
FedEx:
UPS:
b. Which company appears more efficient in using fixed assets?
c. Interpret the meaning of the fixed asset turnover ratio.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Working notes for the calculation of the fixed asset turnover ratio

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions

Calculate the current ratio current assets/current liabilities for Castle rock construction round to one decimal place. The current ratio 2:1
For each office or business segment, indicate which type of Responsibility Center it is: a. A retail location, such as the Apple Store b. A manufacturing division that manages its own facilities and production equipment c. Call center for a warranty claims processing d. Consulting department of an accounting firm e. Quality control department for a golf ball manufacturer PreviousNext
ROI and Margin Arbus Company provided the following information: Turnover Operating assets Operating income Required: 1. What is ROI? (Round your answer to three decimals.) 2.4 $139,000 6,120 2. What is margin? (Round your answer to two decimals.)
Given the following items , compute the required ones. REQUIRED COST OF SALES GIVEN Asset Turnover : Gross Margin: 1,2 0,3 NET SALES TOTAL SALES CURRENT ASSETS Fin.Goods InventoryTurnover Av. Finished Goods Inventory 120.000 Working.Capital Cycle Trade Receivables Turnover CURRENT RATIO 200 days 4 AV.TRADE RECEIVABLES TOTAL DEBT Long Term Debt Total Debt / Equity 250.000 TOT.DEBT/ TOTAL SOURCES
A condensed balance sheet for Simultech Corporation and a partially completed vertical analysis are presented below. Complete the vertical analysis by computing each missing line item as a percentage of total assets. (Round your answers to the nearest whole percent.) SIMULTECH CORPORATION Balance Sheet (summarized) January 31 (in millions of U.S. dollars) Cash $433 29 % Current Liabilities $409 27 % Accounts Receivable 294 19 Long-term Liabilities 495 33 Inventory 206 14 Total Liabilities 904 Other Current Assets 109 Common Stock 118 Property and Equipment 27 2 Retained Earnings 492 32 Other Assets 445 29 Total Stockholders’ Equity 610 Total Assets $1,514 100 % Total Liabilities & Stockholders’ Equity $1,514 100 % 2A. What percentage of Simultech’s total assets relate to inventory? (Round your answer to the nearest whole percent.) 2B. What percentage of Simultech’s total assets relate to property…
Calculate the total asset turnover (sales / total assets) for the firm below. Make sure you do NOT convert your answer and keep 2 decimals for your final answer.....for examples, if you calculate 6,000/400 = 15, you should enter 15 into BB to be marked correct. Sales 4000 COGS $1,200 Depreciation $800 Interest $500 Net Income $200 Total Assets 1700
Where would you find the financial statements for Costco? https://motley.com https://wallstreet.com https://investor.costco.com https://sec.gov Endotherm Company produced revenue of $120,000. Beginning Assets for the period were $200,000 and Ending Assets were $250,000. What is the Total Asset Turnover Ratio for this period? .53 1.87 .48 .26 What is the Total Asset Turnover Ratio for a company with $120,000 in annual sales, beginning Assets of $250,000 and ending Assets of $200,000? .48 1.34 .26 .53 The efficiency ratio that shows how efficiently a company uses its cash to generate revenue is: Accounts Receivable Turnover Ratio. Total Asset Receivable Turnover Ratio. Cash Turnover Ratio. Inventory Turnover Ratio. please answer all questions. explainte answwer provide me with correct option
Financial statement data for years ending December 31 for Xiong Company follow: Year 2 Year 1 Sales $1,560,000 $1,026,000 Fixed assets: Beginning of year 580,000 500,000 End of year 620,000 580,000 a. Determine the fixed asset turnover ratio for Year 1 and Year 2. Round your answers to one decimal place. Fixed asset turnover Year 1 Year 2 b. Does the change in the fixed asset turnover ratio from Year 1 to Year 2 indicate a favorable or an unfavorable change? Favorable Feedback
Find the firm's asset turnover ratio & ROA.
Captain Kurt's Enterprises has a receivables turnover rate of 12.8, a payables turnover rate of 11.9, and an inventory turnover rate of 15.6. What is the length of the firm's operating cycle? a. 24.89 days b. 39.80 days c. 51.92 days d. 62.56 days e. 83.77 days