Answer & Explanation:Assignment 1: Delta
Airlines Property, Plant, and Equipment
According
to the textbook, U.S. companies and foreign companies are affected by
deprecation rules. When companies write off the cost of long-lived assets over
a period of time, the term used is depreciation.
In
order to complete this assignment, review Delta Airlines’ annual reports for
the years 2012 and 2013, located at http://ir.delta.com/stock-and-financial/sec-filings/.
Write
a five to six (5-6) page paper in which you:
Briefly outline Delta Airlines company’s history,
products, and services, and identify the costs reported in the balance
sheet for property, plant, and equipment. Prepare a horizontal analysis of
Delta’s property, plant, and equipment for 2012 and 2013. Next, calculate
the asset turnover ratio, return on asset ratio, and the debt to total
assets ratio. Based on your calculations, indicate the conclusions that you
can draw, based on the changes in property, plant, and equipment.
Determine the method or methods of depreciation that Delta
Airlines uses to depreciate its property, plant, and equipment. Suggest
three (3) alternative methods that Delta Airlines could use in order to
depreciate assets. Based on your suggestions, propose the method that Delta
Airlines could use in order to improve the reporting of its property,
plant and equipment. Provide a rationale for your response.
Analyze the information
disclosed in Delta Airlines’ notes to their financial statements on
property, plant, and equipment. Recommend additional data that Delta
Airlines could include that would be useful to potential investors and
creditors.
Use at least three
(3) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic
resources.
Your
assignment must follow these formatting requirements:
Be typed, double
spaced, using Times New Roman font (size 12), with one-inch margins on all
sides; citations and references must follow APA or school-specific format.
Check with your professor for any additional instructions.
Include a cover
page containing the title of the assignment, the student’s name, the
professor’s name, the course title, and the date. The cover page and the
reference page are not included in the required assignment page length.
The
specific course learning outcomes associated with this assignment are:
Demonstrate,
analyze, and explain the proper accounting for acquisition and valuation
of property, plant, and equipment; valuation; costs subsequent to
acquisition; and disposition of plant assets.
Demonstrate,
analyze, and explain the proper accounting for depreciation, impairments,
and depletion.
Use technology and
information resources to research issues in intermediate accounting.
Write clearly and
concisely about intermediate accounting using proper writing mechanics.
You will get a plagiarism-free paper and you can get an originality report upon request.
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