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. Company 1 $ 7,630 750 390 2,970 19,915 24,588 Company 2 $1,904,300 57,045 97,457 1,282,998 339,038 2,535,656 Sales Depreciation costs Net earnings Current ansets Property, plant, and equipment Total assets Required a. Calculate depreciation costs as a percentage of sales for each company. (Round your percentage answers to 2 decimal places (L.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 (l.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?

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. Company 1 $ 7,630 750 390 2,970 19,915 24,588 Company 2 $1,904,300 57,045 97,457 1,282,998 339,038 2,535,656 Sales Depreciation costs Net earnings Current ansets Property, plant, and equipment Total assets Required a. Calculate depreciation costs as a percentage of sales for each company. (Round your percentage answers to 2 decimal places (L.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 (l.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?

Name: Heatwave Gaming develops, markets, and publishes electronic games. Zi
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Description: 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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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.
Company 1
$ 7,630
750
Company 2
$1,904, 300
57,045
97,457
1,282,998
339,038
2,535,656
Sales
Depreciation costs
Net earnings
390
2,970
19,915
24,588
Current assets
Property, plant, and equipment
Total assets
Required
a. Calculate depreciation costs as a percentage of sales for each company. (Round your percentage answers to 2 decimal places
(1.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 (l.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
a. Depreciation based on sales
b. Percentage of plant to total assets
Based on the information now available
C.
to you, which company is Ziptrain?
d. Managing its assets more efficiently

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