The following schedule summarizes the noncurrent assets reported in the 1997 balance sheets of Wendy’s and Reebok:

Wendy’s Reebok

(Dollars in millions)

Current assets (total) $ 382 $1,465 Noncurrent assets Property, plant, and equipment (at cost) 1,803 354 Less: Accumulated depreciation (538) (197)

Net 1,265 157 Other long-term receivables 179 —

Goodwill, net 51 68 Other noncurrent assets 65 66 Total noncurrent assets 1,560 291 Total assets $1,942 $1,756 Required

a. Identify the major differences between these two firms in their composition of noncurrent assets. Try to explain these differences based on the types of products that each company produces.

b. Based solely on the information provided here, which company appears to have the older assets? Calculate the asset management ratios. Evaluate the results.