ACCT301
Case Study
155 points possible
Use Mergent Online, Davenport’s library database to research your answers
See Rubric for breakdown of points
Review the financial statements, notes and disclosures for Facebook Inc. and Pandora Media Inc. for year ended 2017 and complete the following:
Prove out the companies’ earnings-per-calculations. (10 pts)
Identify whether the companies are using a one statement or two statement approach as it pertains to comprehensive income.(10 pts)
Identify one item on each company’s Statement of Stockholders’ Equity which you are unfamiliar with. Explain why you think it is being reported here. (10 pts)
Identify one item in the operating section of each company’s Statement of Cash Flows which you are unfamiliar with. Explain why you think it is an adjustment to net income. (10 pts)
Calculate the following ratios for each company:
Current ratio (10 pts)
Profit margin (10 pts)
Book value per share (10 pts)
6. Prepare a 2-3 page paper discussing the following (85 pts total-see Rubric for more detail):
A. Using items #3 and #4 from above, review each corporation’s notes to the financial statements and comment on the accounting policy the company uses.
B. Briefly compare each ratio from item #5 above.
C. Which company are you more inclined to invest in and why? Please reference items from #5 above
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