Corporate Financial Accounting - W/CENGAGENOW

13th Edition

ISBN: 9781285148717

Author: WARREN

Publisher: CENGAGE C

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Textbook Question

Chapter 9, Problem 9.4MAD

Compare FedEx and UPS

FedEx Corporation (FDX) and United Parcel Service, Inc. (UPS) compete in the package delivery business. The major fixed assets for each business include aircraft, sorting and handling facilities, delivery vehicles, and information technology. The sales and average book value of fixed assets reported on recent financial statements for each company were as follows:

FedEx

UPS

Sales (in millions)

$50365

$60,906

Average book value of fixed assets (in millions)

22,580

18,576

a. Compute the fixed asset turnover ratio for each company. Round to one decimal place.

b. Which company appears more efficient in using fixed assets?

c. Chapter 9, Problem 9.4MAD, Compare FedEx and UPS FedEx Corporation (FDX) and United Parcel Service, Inc. (UPS) compete in the Interpret the meaning of the ratio for the more efficient company.

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Chapter 9, Problem 9.3MAD

Chapter 9, Problem 9.5MAD

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1. Armor Company had the following information for the month of December. All direct materials were one hundred percent complete, and beginning materials cost $22,700. Work in Process Inventory Beginning balance @ 12/1: 420 units, 10% completed $ 26,000 Completed 1,050 units and transferred them to finished goods inventory $ 217,291 Direct materials 74,000 Direct labor 50,000 Overhead Property taxes 16,000 Depreciation 47,000 Utilities 31,000 Indirect labor 14,000 Ending balance @ 12/31: 405 units, 20% completed $ 40,709 Cost per equivalent unit for conversion under the FIFO method is calculated to be (rounded): 2. Shyne Incorporated calculates cost for an equivalent unit of production using the weighted-average method. Data for July: Work-in-process inventory, July 1 (38,000 units): Direct materials (96% completed) $ 122,600 Conversion (54% completed) 77,050 Balance in work in process inventory, July 1 $ 199,650 Units…

What is the profit margin

Chapter 9 Solutions

Corporate Financial Accounting - W/CENGAGENOW

Ch. 9 - ONeil Office Supplies has a fleet of automobiles...Ch. 9 - Prob. 2DQ Ch. 9 - Prob. 3DQ Ch. 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

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Solution Summary: The author explains the fixed asset turnover ratio, which measures the productive capacity of fixed assets to generate sales revenue for the company.

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Chapter 9 Solutions