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Companies in the tire manufacturing business use a lot of property, plant, and equipment. Tyrell Rubber and Tire Corporation and Maxwell Rubber and Tire Manufacturing
Companies in the tire manufacturing business use a lot of property, plant, and equipment. Tyrell Rubber and Tire Corporation and Maxwell Rubber and Tire Manufacturing are two of the leading manufacturers. In additiion, Maxwell also operates over 1,000 tire service center outlets. Required a. Calculate depreciation costs as a percentage of sales for each company. b. Calculate property, plant, and equipment as a percentage of total assets for each company. c. Based only on the percentages calculated in Requirements a and b, which company appears to be using its assets most efficiently? d. Calculate the return-on-assets ratio for each company. Based on this ratio, which company appears to be using its assets most efficiently? (Enter your answers as a percentage rounded to 1 decimal place (i.e., 0.123 should be entered as 12.3).) Companies in the tire manufacturing business use a lot of property, plant, and equipment. Tyrell Rubber and Tire Corporation and Maxwell Rubber and Tire Manufacturing are two of the leading manufacturers. In additiion, Maxwell also operates over 1,000 tire service center outlets. Required a. Calculate depreciation costs as a percentage of sales for each company. b. Calculate property, plant, and equipment as a percentage of total assets for each company. c. Based only on the percentages calculated in Requirements a and b, which company appears to be using its assets most efficiently? d. Calculate the return-on-assets ratio for each company. Based on this ratio, which company appears to be using its assets most efficiently? (Enter your answers as a percentage rounded to 1 decimal place (i.e., 0.123 should be entered as 12.3).)
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