End of Year (in Beginning of Year (in millions) millions) Property, plant, and equipment 5220,163 $230,508 Less accumulated 136,622 140,561 depreciation Property, plant, and $83,541 $89,947 equipment (net)

End of Year (in Beginning of Year (in millions) millions) Property, plant, and equipment 5220,163 $230,508 Less accumulated 136,622 140,561 depreciation Property, plant, and $83,541 $89,947 equipment (net)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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Question

Fixed asset turnover ratio

Verizon Communications Inc. is a major telecommunications company
in the United States. Two recent balance sheets for Verzion disclosed
the following information regarding fixed assets:

Verizon's revenue for the years was $131,620 million. Assume that the
fixed asset turnover ratio fort the telecommunications industry averages
approximately 1.1

a. Determine Verizon's fixed asset turnover ratio. Round to one
decimal place.

b. Interpet this ratio with respect to the industry average.

End of Year (in
Beginning of Year (in
millions)
millions)
Property, plant, and
equipment
5220,163
$230,508
Less accumulated
136,622
140,561
depreciation
Property, plant, and
$83,541
$89,947
equipment (net)

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