Heatwave Gaming develops, markets, and publishes electronic games. ZipTrain is one of the largest railway networks in the nation, with over 27,000 miles of railroads. The following data were taken from each of the companies' December 31, 2017, annual reports. Revealing which data relate to which company was intentionally omitted. The dollar amounts are in millions. Sales Depreciation costs- Net earnings Current assets Property, plant, and equipment Total assets Company 1 $ 8,200 780 372 3,180 19,990 24,819 a. Depreciation based on sales b Percentage of plant to total assets Based on the information now available to you, which company is Ziptran? d Managing its assets more efficiently Company 2 $1,902,300 57,165 96,737 1,282,098 339,554 2,535,688 Required a. Calculate depreciation costs as a percentage of sales for each company (Round your percentage answers to 2 decimal places. (i.e., 0.0123 is entered as 1.23%).) b. Calculate property, plant, and equipment as a percentage of total assets for each company (Round your percentage answers to 2 decimal places (.e., 0.0123 is entered as 1.23%)) c. Based on the information now available to you, which company is Ziptrain? d. Which company appears to be using its assets most efficiently? Company 1 Company 2 1%
Heatwave Gaming develops, markets, and publishes electronic games. ZipTrain is one of the largest railway networks in the nation, with over 27,000 miles of railroads. The following data were taken from each of the companies' December 31, 2017, annual reports. Revealing which data relate to which company was intentionally omitted. The dollar amounts are in millions. Sales Depreciation costs- Net earnings Current assets Property, plant, and equipment Total assets Company 1 $ 8,200 780 372 3,180 19,990 24,819 a. Depreciation based on sales b Percentage of plant to total assets Based on the information now available to you, which company is Ziptran? d Managing its assets more efficiently Company 2 $1,902,300 57,165 96,737 1,282,098 339,554 2,535,688 Required a. Calculate depreciation costs as a percentage of sales for each company (Round your percentage answers to 2 decimal places. (i.e., 0.0123 is entered as 1.23%).) b. Calculate property, plant, and equipment as a percentage of total assets for each company (Round your percentage answers to 2 decimal places (.e., 0.0123 is entered as 1.23%)) c. Based on the information now available to you, which company is Ziptrain? d. Which company appears to be using its assets most efficiently? Company 1 Company 2 1%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Heatwave Gaming develops, markets, and publishes electronic games. ZipTrain is one of the largest railway networks in the nation,
with over 27,000 miles of railroads. The following data were taken from each of the companies' December 31, 2017, annual reports.
Revealing which data relate to which company was intentionally omitted. The dollar amounts are in millions.
Sales
Depreciation costs
Net earnings
Current assets
Property, plant, and equipment
Total assets
Company 1
$ 8,200
780
372
a. Depreciation based on sales
b. Percentage of plant to total assets
C
Based on the information now available
to you, which company is Ziptran?
d. Managing its assets more efficiently
3,180
19,990
24,819
Company 2
$1,902,300
57,165
96,737
Required
a. Calculate depreciation costs as a percentage of sales for each company (Round your percentage answers to 2 decimal places
(i.e., 0.0123 is entered as 1.23%).)
1,282,098
339,554
2,535,688
b. Calculate property, plant, and equipment as a percentage of total assets for each company. (Round your percentage answers to 2
decimal places (i.e., 0.0123 is entered as 1.23%).)
c. Based on the information now available to you, which company is Ziptrain?
d. Which company appears to be using its assets most efficiently?
Company 1
Company 2
%
%
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