Question: please solve a and b and fill in those boxes. Problem: Module 2 Textbook Problem 20 Learning Objective: 2-18 Show how expense recognition choices and

please solve a and b and fill in those boxes.
 please solve a and b and fill in those boxes. Problem:
Module 2 Textbook Problem 20 Learning Objective: 2-18 Show how expense recognition

Problem: Module 2 Textbook Problem 20 Learning Objective: 2-18 Show how expense recognition choices and industry characteristics affect financial performance measures Heatwave Gaming develops, markets, and publishes electronic games. ZipTrain is one of the largest railway networks in the nation, with over 27,000 miles of railroads. The following data were taken from each of the companies' December 31, 2017, annual reports. Revealing which data relate to which company was intentionally omitted. The dollar amounts are in millions. Sales Depreciation costs Net earnings Current assets Property, plant, and equipment Total assets Company 1 $ 7,870 720 309 3,012 20,035 24,885 Company 2 $1,902,400 57,485 95,252 1,281,729 339,996 2,535,608 Required a. Calculate depreciation costs as a percentage of sales for each company. (Round your percentage answers to 2 decimal places (i.e., 0.0123 is entered as 1.23%).) b. Calculate property, plant, and equipment as a percentage of total assets for each company. (Round your percentage answers to 2 decimal places (.e., 0.0123 is entered as 1.23%).) c. Based on the information now available to you, which company is Ziptrain? d. Which company appears to be using its assets most efficiently? Answer is complete but not entirely correct. a. Company 1 Company 2 720.00 X 1.25 X % 7,870.00 1,902,400.00 % b. Depreciation based on sales Percentage of plant to total assets Based on the information now available to you, which company is Ziptrain? Managing its assets more efficiently C. Company 1 d. Company 2

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