Accumulated Depreciation Form groups of at least four students (this exercise can be done as an entire class, if desired). Individual students, on their own, should select a company and find the fixed asset section of its most recent balance sheet. From the balance sheet (and possibly the footnotes) find the original acquisition cost of property, plant, and equipment (the account title varies slightly by company) and the accumu- lated depreciation on property, plant, and equipment. Compute the ratio of accumulated depreciation to original acquisition cost. Also note the depreciation method used and the average economic life of the assets, if given. (For an extra bonus, find a company that uses accelerated depreciation for report- ing to shareholders; such companies are harder to find.). When everyone gets together, make four columns on the board or on a piece of paper. Find the 25% of the companies with the highest ratios and list them in the first column. Then list the 25% with the next highest ratios in the second column, and so on. As a group, make a list of explanations for the rankings of the companies. What characteristics of the company, its industry, or its depreciation meth- ods distinguish the companies with high ratios from those with low ratios? Analyzing and Interpreting Financial Statements