Assignment
1: Delta Airlines Property, Plant, and Equipment
Due Week 8 and worth 200 points
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 isdepreciation.
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:
1.
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.
2.
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.
3.
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.
4.
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.
Click here to view the grading rubric.
