Required a. Compute the fixed assets turnover for each firm for Years 1, 2, and 3. b. Suggest reasons for the differences in the fixed assets turnovers of TI and HP. c. Suggest reasons for the changes in the fixed assets turnovers of TI and HP during the three-year period.
Required a. Compute the fixed assets turnover for each firm for Years 1, 2, and 3. b. Suggest reasons for the differences in the fixed assets turnovers of TI and HP. c. Suggest reasons for the changes in the fixed assets turnovers of TI and HP during the three-year period.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Texas Instruments (TI) designs and manufactures semiconductor products for use
in computers, telecommunications equipment, automobiles, and other electronics-
based products. The manufacturing of semiconductors is highly capital-intensive.
Hewlett-Packard Corporation (HP) manufactures computer hardware and various
imaging products, such as printers and fax machines. Exhibit 4.25 presents selected
data for TI and HP for three recent years.
Exhibit 4.25 Selected Data for Texas Instruments and Hewlett-Packard
(Amounts in Millions) (Problem 4.19)
Texas Instruments
Sales
Cost of goods sold
Capital expenditures
Average fixed assets
Percentage fixed assets depreciated
Percentage change in sales
Hewlett-Packard
Sales
Cost of goods sold
Capital expenditures
Average fixed assets
Percentage fixed assets depreciated
Percentage change in sales
Required
Year 3
$ 12,501
6,256
763
3,457
54.9%
(9.6)%
$114,552
86,351
3,695
11,050
74.7%
(3.2)%
Year 2
$ 13,835
5,432
686
3,780
52.3%
(3.0)%
$118,364
87,065
2,990
9,318
72.4%
+13.5%
Year 1
$ 14,255
5,775
1,272
3,925
49.0%
+6.4%
$104,286
76,965
3,040
7,331
87.0%
+13.8%
a. Compute the fixed assets turnover for each firm for Years 1, 2, and 3.
b. Suggest reasons for the differences in the fixed assets turnovers of TI and HP.
c. Suggest reasons for the changes in the fixed assets turnovers of TI and HP
during the three-year period.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8dd902f8-6431-45e1-964f-aabc90f93bf5%2F2b2101be-5e2c-464b-bb6c-d485eee77f40%2Fef7p1o_processed.png&w=3840&q=75)
Transcribed Image Text:Texas Instruments (TI) designs and manufactures semiconductor products for use
in computers, telecommunications equipment, automobiles, and other electronics-
based products. The manufacturing of semiconductors is highly capital-intensive.
Hewlett-Packard Corporation (HP) manufactures computer hardware and various
imaging products, such as printers and fax machines. Exhibit 4.25 presents selected
data for TI and HP for three recent years.
Exhibit 4.25 Selected Data for Texas Instruments and Hewlett-Packard
(Amounts in Millions) (Problem 4.19)
Texas Instruments
Sales
Cost of goods sold
Capital expenditures
Average fixed assets
Percentage fixed assets depreciated
Percentage change in sales
Hewlett-Packard
Sales
Cost of goods sold
Capital expenditures
Average fixed assets
Percentage fixed assets depreciated
Percentage change in sales
Required
Year 3
$ 12,501
6,256
763
3,457
54.9%
(9.6)%
$114,552
86,351
3,695
11,050
74.7%
(3.2)%
Year 2
$ 13,835
5,432
686
3,780
52.3%
(3.0)%
$118,364
87,065
2,990
9,318
72.4%
+13.5%
Year 1
$ 14,255
5,775
1,272
3,925
49.0%
+6.4%
$104,286
76,965
3,040
7,331
87.0%
+13.8%
a. Compute the fixed assets turnover for each firm for Years 1, 2, and 3.
b. Suggest reasons for the differences in the fixed assets turnovers of TI and HP.
c. Suggest reasons for the changes in the fixed assets turnovers of TI and HP
during the three-year period.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
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.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education