ACCT301

Case Study

155 points possible

Use Mergent Online, Davenports library database to research your answers

See Rubric for breakdown of points

Review the financial statements, notes and disclosures for Facebook Inc. and Pandora Media Inc. for year ended 2017 and complete the following:

Prove out the companies earnings-per-calculations. (10 pts)

Identify whether the companies are using a one statement or two statement approach as it pertains to comprehensive income.(10 pts)

Identify one item on each companys Statement of Stockholders Equity which you are unfamiliar with. Explain why you think it is being reported here. (10 pts)

Identify one item in the operating section of each companys Statement of Cash Flows which you are unfamiliar with. Explain why you think it is an adjustment to net income. (10 pts)

Calculate the following ratios for each company:

Current ratio (10 pts)

Profit margin (10 pts)

Book value per share (10 pts)

6. Prepare a 2-3 page paper discussing the following (85 pts total-see Rubric for more detail):

A. Using items #3 and #4 from above, review each corporations notes to the financial statements and comment on the accounting policy the company uses.

B. Briefly compare each ratio from item #5 above.

C. Which company are you more inclined to invest in and why? Please reference items from #5 above.