Module Project Chapter 16 and 17

Directions: This module project consists of 4 problems. Please follow the instructions for each problem, and answer the discussion questions on a Word file, then upload the file to below.

Chapter 16 Questions

PROBLEM 1

Brew up some analysis!

Use the following websites to locate the financials for Starbucks:

http://www.nasdaq.com/symbol/sbux/financials?query=balance-sheet

https://finance.yahoo.com/q/bs?s=SBUX&annual

Search for Starbucks Corporation. Click on the Financials link. Prepare a vertical analysis for the 3 years of balance sheets provided.

Discussion Questions

Please copy and paste your vertical analysis for grading.

What might be included as part of Starbucks assets?

How does this analysis assist you in evaluating the financials of Starbucks?

PROBLEM 2

Analysis with some pop!

Use the following websites to locate the financials for Coca-Cola:

http://www.nasdaq.com/symbol/ko/financials?query=balance-sheet

https://finance.yahoo.com/q/bs?s=KO+Balance+Sheet&annual

The report includes information from the 3 most recent years. Perform a horizontal analysis using the income statement data of the current year compared to the previous year.

Discussion Questions

Please copy and paste your horizontal analysis for grading.

What does this analysis tell you about Coca-Colas financial status?

How could you use this information in determining whether to invest in Coca-Cola?

PROBLEM 3

Building better ratios

Use the following websites to locate the financials for Home-Depot:

http://www.nasdaq.com/symbol/hd/financials?query=balance-sheet

https://finance.yahoo.com/q/bs?s=HD+Balance+Sheet&annual

Calculate the current ratio and the total debt to total assets ratio for the 3 years of data provided. Are the ratios improving or deteriorating?

Discussion Questions

Please copy and paste your ratio calculation and total debt to total assets ratio for grading.

What can we learn about an organization by evaluating its current ratio?

What may be some of the specific debts for The Home Depot?

Chapter 17 Questions

PROBLEM 4

Computing depreciation

Go to http://www.dell.com. Find the price of a computer system that you would like to buy. Assume you bought this system for business use and the system has a residual value of $400. Compute the depreciation each year under a 5-year straight-line depreciation. Also, calculate the depreciation using MACRS (Tables 17.4 and 17.5 in the text).

Discussion Questions

Please copy and paste the link to the computer your chose for this problem.

Please copy and paste your depreciation calculations.

Based on the cost of this computer system, would you keep it for more than 5 years? Why or why not?

Do you feel a computer system would actually be worth far less than the depreciated value you calculated? Why?