CCT 280 Financial Accounting
Week 8 Discussion
Evaluate the company’s investment in long term assets
REQUIRED: do the following activities and post your response to the questions below
Use the publicly-traded company you selected in week 1. (FACEBOOK) You will continue to research and investigate the same company throughout the remainder of the course.
Citations: Cite your sources. Include links to your online sources at the bottom of your post. I should be able to click the link and find the source information you worked from. ,
For this assignment you will need the most recent set of financial statements. We are going to look long term assets, and related depreciation and amortization, on the income statement, balance sheet, cash flow statement and the related notes.
Sometimes long term assets and related expenses, gains and losses, are not clearly presented on the financial statements, so we must learn how to read between the lines and piece together a picture that Investors can use to make decisions.
There are not a whole lot of ratios available to measure long term assets. Most of the financial ratios we have looked at in previous weeks cover current assets and liabilities, and focus on the company’s ability to generate and manage operating cash flows.
Part 1 Long term assets
Read chapter 9 in your textbook and refer to your company’s financial statements to answer the following questions.
How much depreciation and amortization expense is shown on the most recent income statement?
Read the statement of cash flows.
Does the company report any adjustments for depreciation in the Operating section?
Were there any Investing activities relating to buying or selling long term assets?
Find the Notes pertaining to long term assets, depreciation and amortization, intangible assets, goodwill, natural resources, and other related disclosures. Refer to your textbook Learning Objectives 9-4 through 9-8. Report on any of these items you found in the Notes.
Can you draw any conclusions about your company’s management of its investments in long term assets?
Are long term assets a major portion of the company’s total assets? Are there any ratios that you can use to help evaluate and analyze long term assets?
Part 2 Market and News
What was the company’s stock price at the end of week 8?
How much did the price per share go up or down in, both dollars and percent, from the stock price you reported in Discussion 1, at the beginning of week 1?
If you had purchased 100 shares of stock at the beginning of week 1 what would be your total gain or loss by the end of week 8?
What was the volume on the last trading day of week 8?
Click the stock price chart and set the display dates to show all the days in the course, beginning with the first trading day of the course and ending with the last day of week 8. What does the chart tell you about the movement of the stock price and volume of trading over the 8 weeks of this course?
Company news: Over the past 8 weeks you found are reported on several news articles about your company. In what ways did this information help you understand the company, and the value of investing in this company and its market segment? Please site specific instances that lead you to your conclusions.