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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
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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< 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.
Transcribed Image Text:< 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.
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