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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Required information [The following information applies to the questions displayed below.] Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $830,000. The estimated market values of the purchased assets are building, $467,500; land, $243,100; land improvements, $56,100; and four vehicles, $168,300. 4. Compared to straight-line depreciation, does accelerated depreciation result in payment of less total taxes over the asset's life? Is tax payment less under accelerated depreciation?
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Ripley corporarion's accumulated depreciation - equipment account increased by 15325 while 3800 of patent amortization was recognized bewtween balance sheet dates. There were no purchases of sales of depreciation or intangible assets during the year. In addition the income statement showed a gain of 22420 from the salem of investments. Reconcile a net income of 286900 to net cash flow from operetatimg activities
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