1. What form of business organization is Facebook? How do you know? 2. Identify what line item flows from the income statement to the statement
1. What form of business organization is Facebook? How do you know?
2. Identify what line item flows from the income statement to the statement of retained earnings.
3. Identify what line item flows from the statement of retained earnings to the balance sheet.
4. Identify what line item flows from the balance sheet to the statement of cash flows.
5. Did Facebook have net income or net loss for 2015? Over what period of time was this amount earned?
6. Write Facebook's accounting equation as of December 31, 2015.
7. How much in total resources does Facebook have to work with? How much does Facebook owe to creditors?
l i i = , d2|.|onestar.edu Oi l o l r11 l' E7 What information is provided in Facebook's basic financial statements? Facebook, Inc., is a publicly held corporation and is frequently in the news. For example, in August 2016, it announced a new feature called \"Lifestage,\" which is an iOS app that emulates Snapchat and is designed to be used by teens. Also in that same month, Mark Zuckerberg sold $95 million of his Facebook shares. Facebook routinely makes the headlines and is seemingly everywhere. It continues to experience growth. To follow are Facebook's four basic financial statements for its most recent year, the year ending December 31, 2015. Please note that all statements have been adapted and condensed for educational use and should not be used for investment decisions. Income Statement Facebook, Inc. Income Statement (adapted for classroom use) For Year Ended December 31, 2015 In millions Net revenues $ 17,928 Expenses 11,703 Operating income (loss) $ 6,225 Other expenses and adjustments 2,537 Net income (loss) $ 3,688 d21.lonestar.edu C f ECON-2301 5012 16K Macro-e... ECON-2301 5012 16K Macro-... ACCT-2301 6005 8W2 Principl... Topic #1 - ACCT-2301 6005 8... https://d21.lonestar.edu/conte... Homework Help - Q&A from O... 1. What form of business orga... Statement of Retained Earnings Facebook, Inc. Statement of Retained Earnings (adapted for classroom use) For Year Ended December 31, 2015 In millions Beginning retained earnings $ 6,099 Add net income 3,688 Ending retained earnings S 9,787 Source: Wendy Tietz, PhD, CPA, CMA, Accountinginthe Headlines.com This work is licensed under a Creative Commons Attribution-NonCommercial 3.0 Unported License. d21.lonestar.edu C f ECON-2301 5012 16K Macro-e... ECON-2301 5012 16K Macro-... ACCT-2301 6005 8W2 Principl... Topic #1 - ACCT-2301 6005 8... https://d21.lonestar.edu/conte... Homework Help - Q&A from O... 1. What form of business orga... Balance Sheet Facebook, Inc. Consolidated balance sheet (adapted for classroom use) As of December 31, 2015 In millions Assets Current assets: Cash and cash equivalents 4,907 Marketable securities 13,527 Accounts receivable, net 2,559 Prepaid and other expenses 659 Total current assets $ 21,652 Property and equipment, net 5,687 Intangible assets, net 3,246 Other long-term assets 18,822 Total assets S 49,407 Liabilities and stockholders' equity Current liabilities: S Accounts payable 196 Other current liabilities 1,729 Total current liabilities 1,925l H = d2|.|onestar.edu Cl l o l E1 l E7 Statement of Cash Flows Facebook, Inc. Statement of Cash Flows (adapted for classroom use) For Year Ended December 31, 2015 In millions Cash flows provided by operating activities 5 8,599 Cash flows used in investing activities (9,434) Cash flows provided by financing activities 1,582 Adjustment to reconcile (155) Net increase in cash and cash equivalents $ 592 Cash and equivalents at beginning of period 4,315 Cash and equivalents at end of period $ 4,907 Facebook's complete, unabridged financial statements can be found on its investor relations website. Note: The nancial statements above can also be downloaded in Excel format for enhanced readability
