FS #4 – Long Term Assets and Liabilities 1111 unread replies.1111 replies. Chapter 9 Questions – Long Term Assets – Note that the assignment has two parts: 1) your Post and 2) your Response! 1. Name your company in the TOP line of your post. 2. Asset turnover provides an indicator of how many dollars in sales are provided for every dollar spent on assets. List the beginning and ending total assets for your company for two years. List the years at the top. You will need two balance sheets as this will involve three years of data. List the Net Sales. Calculate Asset Turnover. The larger the Asset turnover, the better. List the years at the top. Do NOT leave as “Current Year” and “Prior Year”. Current Year: Prior Year Net Sales Total Assets – end of year Total Assets – beginning of year Average Total Assets (calc) Asset Turnover (Net Sales/Average Total Assets) (calc) 3. Review the long term asset categories on your 10-K Balance Sheet. List the depreciation method(s) your company uses. Hint: see the Notes to the Financial Statements. 4. Comment on the two years of Asset Turnover. How does the current year compare to the prior year? Chapter 10 Questions – Liabilities 5. Debt to total assets ratio provides a measure of long term solvency. Ideally, you want the percentage to be less than one. List the total assets and the total liabilities for your company for two years from your 10-K balance sheet. List the years at the top. Calculate Debt to total Assets ratio. The lower the Debt to total Assets ratio, the better. List the years at the top. Do NOT leave as “Current Year” and “Prior Year”. Current Year: Prior Year Total Debt Total Assets Debt to Assets (Total Debt/Total Assets) (calc) 6. Review the liabilities on your 10-K Balance Sheet. Note the long term liabilities. List the largest category and note when it is due. Hint: See the Notes to the Financial Statements. 7. Comment on the two years of Debt to Assets ratio. How does the current year compare to the prior year? 8. RESPONSE: Comment about a posting about another company. DO NOT PICK THE SAME COMPANIES AS THE REST OF YOUR GROUP PICKS. (E.G., THE KROGER GROUP PEOPLE SHOULD ALL COMPARE TO DIFFERENT COMPANIES!) ALWAYS LIST YOUR COMPANY’S NAME AND THE COMPANY NAME YOU ARE DISCUSSING IN THE FIRST SENTENCE! Analyze why your numbers are different or the same as your classmates. DO NOT DO THIS CASUALLY! WRITE first in Word and be sure to proofread and spell check. Talk ONLY about the numbers and percent trends that you see. You do not have to make assumptions about future products or the market. HINTS: Make time to proof read BEFORE the due date! TIPS ON WRITING: Write clearly, with emphasis on C-O-E. Content: take a position; provide evidence to support your conclusion, e.g., “Sales have improved dramatically over the three years– 10% growth in 2001 compared to 2000 and 15% growth in 2002 compared to 2001.” Organization: Organize your thoughts clearly; don’t ramble from topic to topic. For longer paragraphs, make a short outline to assure that you say what you want to say. Editing: Avoid typos and misspellings, avoid run on sentences, awkward sentences. Proof read your team members’ writing and give them feedback on this. Note: When writing about the company, refer to it as an “IT”, not a “THEY.” Company is singular, not plural.