Go to www.delta.com. In the menu at the bottom of the home page click on About Delta. Then locate Delta’s Annual Reports under Investor Relations. Select the most recent annual report. Answer the following questions about Delta Air Lines, Inc.:
1. Locate Delta’s accumulated depreciation balance on the balance sheet or in its property and equipment footnote. What is the dollar magnitude of accumulated depreciation at year end? Does this represent an expense for Delta? Why does Delta keep track of accumulated depreciation?
2. Does Delta include a line for depreciation on its Consolidated Statements of Operations? If so, what is the dollar amount reported? Locate the Property and Equipment (Long-Lived Assets) footnote. Does the footnote include a dollar amount for depreciation expense? If so, what is the dollar amount reported? If both numbers are reported, do they agree?
3. Locate Cash and Cash Equivalents at the end of the year on the Consolidated Balance Sheet. How much did cash and cash equivalents increase or decrease during the past year? Where would you look for a detailed explanation of the change in Cash?
4. Locate Shareholders’ Equity on the Consolidated Balance Sheets. Does Delta’s common stock have a par value per share? What is it? Consider two amounts: Common Stock and Additional Paid-in Capital. What is the dollar amount reported in each of these line items. How did these amounts arise?
5. Again, locate Shareholders’ Equity on the Consolidated Balance Sheets. What does Delta report for Retained Earnings? Did Retained Earnings increase or decrease during the year? What could cause this change in Retained Earnings?