Verizon Communications Inc. is a major telecommunications company in the United States.Two recent balance sheets for Verizon disclosed the following information regardingfixed assets:Beginning ofYear(in millions)End of Year(in millions)Property, plant, and equipmentLess accumulated depreciationProperty, plant, and equipment (net)$220,163$230,508140,561136,622$ 83,541$ 89,947Verizon's revenue for the year was $131,620 million. Assume that the fixed asset turnoverratio for the telecommunications industry averages approximately 1.1.a. Determine Verizon's fixed asset turnover ratio. Round to one decimal place.Interpret this ratio with respect to the industry average.b.

a.Determine fixed asset turnover ratio:

Answered: Verizon Communications Inc. is a major…

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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At December 31, 2014, Navaro Corporation reported the following plant assets:. Land Buildings $5,289,000 $32,900,000 Less: Accumulated depreciation - buildings 21,023,775 11,876,225 Equipment 70,520,000 Less: Accumulated depreciation - equipment 8,815,000 61,705,000 Total plant assets $78,870,225 During 2015, the following selected cash transactions occurred. Apr. 1 Purchased land for $3,878,600. May 1 Sold equipment that cost $1,057,800 when purchased on January 1, 2008. The equipment was sold for $299,710. June 1 Sold land for $2,820,800. The land cost $1,763,000. July 1 Purchased equipment for $1,939,300. Dec. 31 Retired equipment that cost $1,234,100 when purchased on December 31, 2005. No salvage value was received. Record adjusting entries for depreciation for 2015 Prepare the plant assets section of Navaro's balance sheet at December 31 2015
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