Corporate Financial Accounting
14th Edition
ISBN: 9781305653535
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 9, Problem 9.4ADM
Comcast, Google, and Walmart: Fixed asset turnover ratio
The following table shows the sales and average book value of fixed assets for three different companies from three different industries for a recent year:
| Company (Industry) | Sales (in millions) | Average Book Value of Fixed Assets (in millions) |
| Comcast Corporation (communications) | $64,657 | $ 28,536 |
| Google Inc. (Internet) | 59,825 | 14,189 |
| Walmart Stores, Inc. (retail) | 474,259 | 117,294 |
- A. For each company, determine the fixed asset turnover ratio. (Round to one decimal place.)
- B. Explain Comcast’s fixed asset turnover ratio relative to the other two companies.
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Chapter 17 Homework
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Exercise 17-11 (Algo) Computing product cost per unit using plantwide method and activity-based
costing LO P1, P3
Consider the following data for two products of Vigano Manufacturing.
Activity
Budgeted
Cost
Activity Driver
eBook
Machine setup
Parts handling
Quality inspections
Hint
Total budgeted overhead
$ 25,000 (20 machine setups)
20,000 (16,000 parts)
30,000 (100 inspections)
$ 75,000
Unit Information
Product A
Units produced
2,500 units
Ask
Direct materials cost
$ 35 per unit
Product Bi
500 units
$ 45 per unit
$
55 per unit
2 per unit
$ 65 per unit
2.50 per unit
Print
References
Direct labor cost
Direct labor hours
1. Using a plantwide overhead rate based on 6,250 direct labor hours, compute the total product cost per unit for each product.
2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead
cost,
(a) compute overhead activity…
Consolidation Working Paper One Year after Acquisition, Bargain Purchase
On January 1, 2022, Paxon Corporation acquired 90 percent of the outstanding common stock of Saxon Company for $1.8 billion cash. The fair value of the 10 percent noncontrolling interest in Saxon was estimated to be $150 million at the date of acquisition. Paxon uses the complete equity method to report its investment. The trial balances of Paxon and Saxon
(in millions)
Cash and receivables
Inventory
Equity method investments
Investment in Saxon
Dr(Cr)
Paxon Saxon
$3,225 $855
2,260
530
December 31, 2022, appear below:
2,441.5
Land
650
300
Buildings and equipment, net
3,600 1,150
Current liabilities
(2,020)
(1,200)
Long-term debt
(5,000) (450)
(500)
(50)
Common stock, par value
Additional paid-in capital
Retained earnings, January 1
Dividends
Sales revenue
(1,200) (200)
(2,410) (600)
500
250
(30,000) (12,000)
Equity in net income of Saxon
(616.5)
Gain on acquisition
(250)
Gain on sale of securities
(150)
Cost of…
Chapter 9 Solutions
Corporate Financial Accounting
Ch. 9 - ONeil Office Supplies has a fleet of automobiles...Ch. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Distinguish between the accounting for capital...Ch. 9 - Immediately after a used truck is acquired, a new...Ch. 9 - Keyser Company purchased a machine that has a...Ch. 9 - Is it necessary for a business to use the same...Ch. 9 - A. Under what conditions is the use of an...Ch. 9 - For some of the fixed assets of a business, the...Ch. 9 - Prob. 10DQ
Ch. 9 - Straight-line depreciation A building acquired at...Ch. 9 - Units-of-activity depreciation A truck acquired at...Ch. 9 - Double-declining-balance depreciation A building...Ch. 9 - Revision of depreciation Equipment with a cost of...Ch. 9 - Capital and revenue expenditures On February 14,...Ch. 9 - Sale of equipment Equipment was acquired at the...Ch. 9 - Prob. 9.7BECh. 9 - Prob. 9.8BECh. 9 - Costs of acquiring fixed assets Melinda Staffers...Ch. 9 - Prob. 9.2EXCh. 9 - Prob. 9.3EXCh. 9 - Prob. 9.4EXCh. 9 - Straight-line depreciation rates Convert each of...Ch. 9 - Straight-line depreciation A refrigerator used by...Ch. 9 - Depreciation by units-of-activity method A...Ch. 9 - Depreciation by units-of-activity method Prior to...Ch. 9 - Depreciation by two methods A Kubota tractor...Ch. 9 - Depreciation by two methods A storage tank...Ch. 9 - Partial-year depreciation Equipment acquired at a...Ch. 9 - Prob. 9.12EXCh. 9 - Capital and revenue expenditures Warner Freight...Ch. 9 - Prob. 9.14EXCh. 9 - Capital and revenue expenditures Quality Move...Ch. 9 - Capital expenditure and depreciation Willow Creek...Ch. 9 - Entries for sale of fixed asset Equipment acquired...Ch. 9 - Disposal of fixed asset Equipment acquired on...Ch. 9 - Prob. 9.19EXCh. 9 - Amortization entries Kleen Company acquired patent...Ch. 9 - Prob. 9.21EXCh. 9 - Balance sheet presentation List the errors you...Ch. 9 - Asset traded for similar asset A printing press...Ch. 9 - Prob. 9.24EXCh. 9 - Entries for trade of fixed asset On July 1, Twin...Ch. 9 - Entries for trade of fixed asset On October 1,...Ch. 9 - Prob. 9.1APRCh. 9 - Comparing three depreciation methods Dexter...Ch. 9 - Depreciation by three methods; partial years...Ch. 9 - Depreciation by two methods; sale of fixed asset...Ch. 9 - Prob. 9.5APRCh. 9 - Amortization and depletion entries Data related to...Ch. 9 - Allocating payments and receipts to fixed asset...Ch. 9 - Comparing three depreciation methods Waylander...Ch. 9 - Depreciation by three methods; partial years...Ch. 9 - Depreciation by two methods; sale of fixed asset...Ch. 9 - Transactions for fixed assets, including sale The...Ch. 9 - Amortization and depletion entries Data related to...Ch. 9 - Continuing Company AnalysisAmazon: Fixed asset...Ch. 9 - Prob. 9.2ADMCh. 9 - Prob. 9.3ADMCh. 9 - Comcast, Google, and Walmart: Fixed asset turnover...Ch. 9 - Prob. 9.1TIFCh. 9 - Communication Godwin Co. owns three delivery...
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