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Companies in the tire manufacturing business use a lot of property, plant, and equipment. Tyrell...

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Accounting

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. Tyrell Rubber & Tire Maxwell Rubber & Tire Sales $2,818 $15,485 Depreciation and depletion costs 148 782 Property, plant, and equipment (net of accumulated depreciation) 950 5,936 Total assets 2,635 16,882 Depreciation method Straight-line Straight-line Depletion method Units of production Units of production Estimated life of assets Buildings 10 to 40 years 3 to 45 years Machinery and equipment 2 to 14 years 3 to 40 years Net income $78 $703 Required Calculate depreciation costs as a percentage of sales for each company. Calculate property, plant, and equipment as a percentage of total assets for each company. Based only on the percentages calculated in Requirements a and b, which company appears to be using its assets most efficiently? Calculate the return-on-assets ratio for each company. Based on this ratio, which company appears to be using its assets most efficiently

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