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, 2008, 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 versus Goodyear.

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Cooper Tire Goodyear Tire Sales $2,881,811 $19,488,000 Depreciation costs Buildings, machinery, and equipment (net of accumulated depreciation) Total assets Depreciation method 138,805 660,000 901,274 5,634,000 2,042,896 15,226,000 Straight-line or accelerated Straight-line Estimated life of assets: Buildings 10 to 40 years 5 to 45 years Machinery and equipment 5 to 14 years 3 to 30 years