Cooper Tire Rubber Company claims to be the fourth largest tire manufacturer in North America. Goodyear Tire & Rubber Company is the largest tire manufacturer in North America. The following information was taken from these companies€™ December 31, 2007, annual reports. All dollar amounts are in thousands.

Required
a. Calculate depreciation costs as a percentage of sales for each company.
b. Calculate buildings, machinery, and equipment as a percentage of total assets for each company.
c. Which company appears to be using its assets most efficiently? Explain your answer.
d. Identify some of the problems a financial analyst encounters when trying to compare the use of long-term assets of Cooper versusGoodyear.

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Cooper Tire Goodyear Tire $19,644,000 Sales Depreciation costs Buildings, machinery, and equipment $2,932,575 131,007 610,000 (net of accumulated depreciation) Total assets Depreciation method 949,458 2,296,868 Straight-line or accelerated 4,383,000 17,028,000 Straight-line Estimated life of assets: Buildings Machinery and equipment 10 to 40 years 4 to 14 years 8 to 45 years 3 to 30 years