Electronic Arts, Inc., (commonly known as EA Sports) develops,
markets, and publishes electronic games and related items such as
gift wrapping paper. Union Pacific Corporation is one of the
largest railway networks in the nation, with 32,122 miles of
railroads. The following data were taken from one of the companies’
December 31, 2017, annual reports. Revealing which data relate to
which
company was intentionally omitted. The dollar amounts are in
millions.
- Electronic Arts Inc Commonly Known As Ea Sports Develops Markets And Publishes Electronic Games And Related Items 1 (86.23 KiB) Viewed 14 times
Exercise 6-21A (Static) Performing ratio analysis using real-world data LO 6-11 Electronic Arts, Inc., (commonly known as EA Sports) develops, markets, and publishes electronic games and related items such as gift wrapping paper. Union Pacific Corporation is one of the largest railway networks in the nation, with 32,122 miles of railroads. The following data were taken from one of the companies' December 31, 2017, annual reports. Revealing which data relate to which
company was intentionally omitted. The dollar amounts are in millions. Sales Depreciation costs Net earnings Current assets Property, plant, and equipment Total assets
Company 1 $21, 240 2,105 10,712 4,006 51,605 57,806
Company 2 $5,150 136 1,043 6,094 453 8,584 a. Required a. Calculate depreciation costs as a percentage of sales for each
company. (Round your percentage answers to 2 decimal places (i.e., 0.0123 is entered as 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 (i.e., 0.0123 is entered as 1.23%).) C. Based on the information now available to you, which
company is Union Pacific? d. Which
company appears to be using its assets most efficiently?
Company 1
Company 2 % % a. Depreciation based on sales b. Percentage of plant to total assets Based on the information now available to you, which
company is Union Pacific? d. Managing its assets more efficiently c C.