Question

The 2016 financial statements for BNSF Railway report the following information: Year ended December 31, 2016 2015 (In millions) Revenues $19,829 $21,967 Property and equipment, net 61,250 59,510 Total assets 84,122 81,703 The 2016 property, plant and equipment turnover is: A. 0.39 B. 2.38 C. 0.33 D. 0.70 E. None of the above

Answer 1

Answer: C. 0.33

Step-by-step explanation:

To find the 2016 Property, Plant and Equipment turnover, we divide the 2016 revenue by the average of Property, Plant and Equipment over the 2 years.

Calculating the Average would be,

= (61250+59510)/2

= $60,360

Now that we have the average we will divide the revenue by it,

= 19,829/60,360

= 0.32840344484

= 0.33

The 2016 property, plant and equipment turnover is Option C, 0.33