Southwest Airlines operates passenger services throughout the United States. The following data (in millions) were adapted from a recent financial statement of Southwest.
Net sales ...................... $15,658
Beginning of year property, plant, and equipment ...... 10,578
End of year property, plant, and equipment ......... 12,127
1. Compute the fixed asset turnover. Round to two decimal places.
2. Compare the results from part (1) with the fixed asset turnover calculated for United in FA 7-1 and for Year 2 for of Delta calculated on page 272.
In FA 7-1, United Continental Holdings, Inc., which was formerly known as United Airlines, operates passenger service throughout the world. The following data (in millions) were adapted from a recent financial statement of United.
Net sales ...................... $37,110
Beginning of year property, plant, and equipment ... 16,945
End of year property, plant, and equipment ....... 16,419