Question Part I: Use this link to access the 2018 annual report for Facebook Inc. Use the annual report to answer the following questions: 1. Go to Page 57 and locate the balance sheet. Under current assets, what dollar value were marketable securities on Dec 31, 2017 and on Dec 31, 2018? Did the marketable securities increase or decrease? What was the percentage decrease or increase (to two decimal places)? 2. Divide the marketable securities as at Dec 31, 2017 by the total assets on that same date and express you answer as a percentage to two decimal places. Do the same thing for Dec 31, 2018? What is the change from 2017 to 2018? 3. Go to page 64 to access the "Notes to the Financial Statements". Scroll all the way until you get to "Fair Value of Financial Instruments". Read the entire subsection. What is an example of a marketable security would meet the level 1 input? Question Part II: Use this link to access the 2018 annual report for Amazon. Use the annual report to answer the following questions: 1. Go to Page 39 and locate the balance sheet. Under current assets, what dollar value were marketable securities on Dec 31, 2017 and on Dec 31, 2018? Did the marketable securities increase or decrease? What was the percentage decrease or increase (to two decimal places)? 2. Divide the marketable securities as at Dec 31, 2017 by the total assets on that same date and express you answer as a percentage to two decimal places. Do the same thing for Dec 31, 2018? What is the change from 2017 to 2018? 3. Go to page 41 to access the "Notes to the Financial Statements". Scroll all the way until you get to "Fair Value of Financial Instruments". Read the entire subsection. Is the disclosure note similar to that of Facebook? Sample Response: To help you with planning your response, below is a sample partial response to show you how you may organize your data. If you use Excel, it will make your work so much easier and ensure you do not have calculation errors. Remember I am available to help you even with Excel and planning out your responses. The table below shows the summarized data that answers questions 1 and 2 of parts I and II. MARKETABLE SECURITIES (In Millions) FACEBOOK AMAZON 31-Dec-17 31-Dec-18 31-Dec-17 31-Dec-18 Marketable Securities $ 20,000 $ 22,000 30,000 $ 36,000 Total Assets $ 100,000 $ 94,000 168,000 184,000 (Securities / Assets) % 20.00% 23.40% 17.86% 19.57% Page XX of annual report Page YY of annual report Change in securities (2018-2017) $ 2.000.00 (2018 - 2017) $ 6,000.00 % Change 10.00% 20.00% As seen from the table above, Amazon had a larger dollar value of investments (marketable securities) for both accounting periods. However, as a percentage of assets, Facebook's securities were a larger proportion of its total assets for both accounting periods compared with those of Amazon. In other words, although Amazon had more investments in dollars, it is a much bigger company than Facebook, and thus, the proportion of its investments to total assets were lesser than that of Facebook. Question three not answered in this sample. Question Part I: Use this link to access the 2018 annual report for Facebook Inc. Use the annual report to answer the following questions: 1. Go to Page 57 and locate the balance sheet. Under current assets, what dollar value were marketable securities on Dec 31, 2017 and on Dec 31, 2018? Did the marketable securities increase or decrease? What was the percentage decrease or increase (to two decimal places)? 2. Divide the marketable securities as at Dec 31, 2017 by the total assets on that same date and express you answer as a percentage to two decimal places. Do the same thing for Dec 31, 2018? What is the change from 2017 to 2018? 3. Go to page 64 to access the "Notes to the Financial Statements". Scroll all the way until you get to "Fair Value of Financial Instruments". Read the entire subsection. What is an example of a marketable security would meet the level 1 input? Question Part II: Use this link to access the 2018 annual report for Amazon. Use the annual report to answer the following questions: 1. Go to Page 39 and locate the balance sheet. Under current assets, what dollar value were marketable securities on Dec 31, 2017 and on Dec 31, 2018? Did the marketable securities increase or decrease? What was the percentage decrease or increase (to two decimal places)? 2. Divide the marketable securities as at Dec 31, 2017 by the total assets on that same date and express you answer as a percentage to two decimal places. Do the same thing for Dec 31, 2018? What is the change from 2017 to 2018? 3. Go to page 41 to access the "Notes to the Financial Statements". Scroll all the way until you get to "Fair Value of Financial Instruments". Read the entire subsection. Is the disclosure note similar to that of Facebook? Sample Response: To help you with planning your response, below is a sample partial response to show you how you may organize your data. If you use Excel, it will make your work so much easier and ensure you do not have calculation errors. Remember I am available to help you even with Excel and planning out your responses. The table below shows the summarized data that answers questions 1 and 2 of parts I and II. MARKETABLE SECURITIES (In Millions) FACEBOOK AMAZON 31-Dec-17 31-Dec-18 31-Dec-17 31-Dec-18 Marketable Securities $ 20,000 $ 22,000 30,000 $ 36,000 Total Assets $ 100,000 $ 94,000 168,000 184,000 (Securities / Assets) % 20.00% 23.40% 17.86% 19.57% Page XX of annual report Page YY of annual report Change in securities (2018-2017) $ 2.000.00 (2018 - 2017) $ 6,000.00 % Change 10.00% 20.00% As seen from the table above, Amazon had a larger dollar value of investments (marketable securities) for both accounting periods. However, as a percentage of assets, Facebook's securities were a larger proportion of its total assets for both accounting periods compared with those of Amazon. In other words, although Amazon had more investments in dollars, it is a much bigger company than Facebook, and thus, the proportion of its investments to total assets were lesser than that of Facebook. Question three not answered in this sample
