As a team, select an industry to analyze. Yahoo! Finance provides lists of industries at finance.yahoo.com/industries Click on an industry for a list of companies in that industry. Alternatively, go to Google Finance at finance.google.com/finance, search for a company you are interested in, and you will be presented with a list including that company and its competitors. Each team member should acquire the annual report or 10-K for one publicly traded

company in the industry, with each member selecting a different company (the SEC EDGAR service at www.sec.gov and the company's investor relations website itself are good sources).

Required:

1. List the accounts and amounts of the company's long-lived assets (land, buildings, equipment, intangible assets, natural resources, and/or other) for the last three years.

a. What is the percentage of each to total assets (rounded to two decimal places)?

b. What do the results of your analysis suggest about the strategy your company has followed with respect to investing in long-lived assets?

2. What cost allocation method(s) and estimates does the company use for each type of long-lived asset?

3. What percentage of the property, plant, and equipment (rounded to two decimal places) has been used as of the end

of the most recent year? (Accumulated Depreciation Cost)

4. What does the company disclose regarding asset impairment? What was its impairment loss, if any, in the most recent year?

5. Ratio analysis:

a. What does the fixed asset turnover ratio measure in general?

b. Compute the ratio for the last three years. Round your answers to two decimal places.

c. What do your results suggest about the company?

d. If available, find the industry ratio for the most recent year, compare it to your results, and discuss why you believe your company's differs from or is similar to the industry ratio.

6. What was the effect of depreciation expense on cash flows from operating activities? Compute the percentage of depreciation expense to cash flows from operating activities (rounded to two decimal places) for each of the past three years.

7. From the statement of cash flows, what were capital expenditures over the last three years? Did the company sell any long-lived assets?