Consider a publicly-held company whose products you are familiar with. Some examples might include: Access the companys

Question:

Consider a publicly-held company whose products you are familiar with. Some examples might include:

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Access the company’s public website and search for its most recent annual report. ies: Some pre al provide access to their financial data through an “investor relations” link, while others provide a direct link to their “annual reports.”) After locating your company’s most recent annual report, open the file and review its contents.
After reviewing the annual report for your selected company, prepare answers to the following questions:

a. How does the company depreciate its property, plant and equipment (PP&E)? Calculate the ratio of the accumulated depreciation divided by gross PP&E for the past two years. How old are the company’s PP&E assets? What percentage of their useful life remains?

b. Does the company have any intangible assets? If so, what are they? What percentage of total assets do they represent?

c. Did the company invest in new PP&E or new intangible assets during the past two years? If so, in what amount?

d. Calculate the total asset turnover, the PP&E turnover, and the intangible asset turnover for each of the past two years. Are these turnover ratios increasing or decreasing? What might explain these trends?

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