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Fedex Corporation Form 10k Analysis

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FEDEX Corporation Form 10-K Analysis Jeffrey D. Simmons Ashford University BUS 630: Managerial Accounting Professor Dr. Isabel Wan September 5, 2011 Abstract This paper has several goals. First, the managerial accounting question to be analyzed is business strategy. Utilizing financial reports management is able to analyze forward-looking statements of FEDEX Corporation current expectations based on their 2005 10K form. The final goal is to establish qualified information relative to business strategy and accounting practices that will enable management’s business decision with reference to industry share, total …show more content…

The salary of FedEx Express CEO David J. Bronczek is traceable to the FedEx Express business segment but is common to the ten sorting and handling facilities that FedEx Express operates (FedEx Form 10-K 2005, pp. 24 & 26). The cost of operating one of the above sorting and handling facilities is traceable to that specific facility but the cost of operating the specific facility is common to all trucks dropping off or delivering packages. The salary of Executive VP T. Michael Glenn would be traceable to FedEx’s Market Development and Communications departments but would be common to FedEx’s four business segments (FedEx Form 10-K 2005, p. 27) Compute the margin, turnover, and return on investment (ROI) in 2005 for each of FedEx’s four business segments (Hint: page 99 reports total segment assets for each business segment.) (Dollar values in millions) FedEx Express FedEx Ground FedEx Freight FedEx Kinko's Sales $19,485 $4,680 $3,217 $2,066 Operating income $1,414 $604 $354 $100 Segment assets (2005) $13,130 $2,776 $2,047 $2,987 Segment assets (2004) $12,443 $2,248 $1,924 $2,903 Avg operating assets $12,787 $2,512

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