Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Heatwave Gaming develops, markets, and publishes electronic games ZipTrain is one of the largest railway networks in the nation with over 27000 miles of railroads.

image text in transcribed
image text in transcribed
Heatwave Gaming develops, markets, and publishes electronic games ZipTrain is one of the largest railway networks in the nation with over 27000 miles of railroads. The following data were taken from each of the companies December 31, 2017, annual reports, Revealing which data relate to which company was intentionally omitted. The dollar amounts are in millions Company Company 2 Sales $ 8,170 $1,983,400 Depreciation costs 57,465 Het earnings 363 Current assets 3,033 Property, plant, and equipment 19,915 Total assets 24,863 880 96,431 1,282,152 339.178 2,535,624 Required a. Calculate depreciation costs as a percentage of sales for each company (Round your percentage answers to 2 decimal places fi.e.. 0.0123 is entered os 1.23%).) b. Calculate property, plant and equipment as a percentage of total assets for each company. (Round your percentage answers to 2 decimal places (.e., 0.0123 is entered as 1.23%).) C. Based on the information now available to you, which company is Ziptrain? d. Which company appears to be using its assets most efficiently? Company 1 Company 2 981 13.40 a Depreciation based on sales b. Percentage of plant to total assets Based on the information now available C to you, which company is train? d Managing its assets more efficiently Company 1 Company 2 On January 1, Year 1, Poultry Processing Company purchased a freezer and related installation equipment for $60,000. The equipment had a three-year estimated life with a $3,600 salvage value Straight-line depreciation was used. At the beginning of Year 3, Poultry Processing revised the expected life of the asset to four years rather than three years. The salvage value was revised to $2,600 Required Compute the depreciation expense for each of the four years, Year 1 to Year 4. Depreciation Expense Year 1 Year 2 Year 3 Year 4

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

How To Build A Cyber Resilient Organization Internal Audit And IT Audit

Authors: Dan Shoemaker, Anne Kohnke, Ken Sigler

1st Edition

1138558192, 978-1138558199

More Books

Students also viewed these Accounting questions