Calculate depreciation costs as a percentage of sales

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Question - Heatwave Gaming develops, markets. and publishes electronic games. ZipTrain is one of the largest railway networks in the nation, with over 27,000 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 1

Company 2

Sales

$8,380

$1, 902, 208

Depreciation costs

848

57,155

Net earnings

336

95,459

Current assets

2,914

1,281,117

Property, plant, and equipment

20,080

339,122

Total assets

24,995

2,535,632

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 on the information now available to you, which company is Ziptrain?

d. Which company appears to be using its assets most efficiently?

Reference no: EM132591352

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