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Crafts Galore, a distributor of handmade gifts, operates out of owner Jenny Finn’s house. At the end of the current year, Jenny reports she has 1,500 units (products) in her basement, 30 of which were damaged by water and cannot be sold. She also has another 250 units in her van, ready to deliver per a customer order, terms FOB destination, and another 70 units out on consignment to a friend who owns a retail store. How many units should Jenny include in her company’s period-end inventory?
Three major segments of the transportation industry are motor carriers, such as YRC Worldwide; railroads, such as Union Pacific; and transportation arrangement services, such as C.H. Robinson Worldwide Inc. Recent financial statement information for these three companies is shown as follows (in thousands of dollars):
|Net sales||$ 4,334,640||$ 16,965,000||$ 9,274,305|
|Average total assets||2,812,504||42,636,000||1,914,974|
b. Assume that the ratio of net sales to assets for each company represents their respective industry segment. Interpret the differences in the ratio of net sales to assets in terms of the operating characteristics of each of the respective segments.