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Computing and Comparing PPE Turnover for Two Companies Texas Instruments Inc. and Intel Corporation report the following information Intel Corporation Texas Instruments $ millions Sales PPE, net Sales PPE, net 2015 $55,355 $31,858 $13,000 $2,596 2014 55,870 33,238 13,045 2,840 Compute the 2015 PPE turnover for both companies. Round answers to two decimal places.

Answer :

mltn1980

Answer:

      2015  

Intel   Texas    

$55,355  $31,858 Net Sales

$13,000  $2,596 PPE

4,26  12,27  PPE

Explanation:

To find the PPE we need to know the TOTAL REVENUE and the value of the balance sheets of the TOTAL PPE (Property, Plant & Equipment) , this last value of fixed assets must be net of accumulated depreciation, we need the value at the beginning and at the end of the year, because we compare the total sales of the year with the total fixed assets investment of the same year year.

Then we divide the Total Net Revenues , (Gross Sales, less returns and allowances) by the Average Fixed Assets ( Beginning Balance - Final Balance)/2.

This ratio shows to the company how well invested was the purchase of new Machinery and property during the year.      

     

     

     

     

     

     

     

     

     

     

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