Verizon Communications Inc. is a major telecommunications company in the United States. Two recent balance sheets for Verizon disclosed the following information regarding fixed assets:

Verizon’s revenue for the year was $130,863 million. Assume that the fixed asset turnover ratio for the telecommunications industry averages approximately 1.1.

a. Determine Verizon’s fixed asset turnover ratio. Round to one decimal place.

b. Interpret this ratio with respect to the industry average.

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Beginning of Year (in millions (in millions) $246,498 End of Year $252,835 Property, plant, and equipment Less accumulated depreciation Property, plant, and equipment (net) 163,549 157,930 S 89,286 S 88,568