(a) Analyze Facebook's financial statements and excerpts from the company's 2013 Form 10-K. Your analysis should include...

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(a) Analyze Facebook's financial statements and excerpts from the company's 2013 Form 10-K. Your analysis should include the preparation of common-size financial statements, key financial ratios, and an evaluation of short-term solvency, operating efficiency, capital structure and long term solvency, profitability, and market measures. (The financial statement analysis template can be accessed and used at www.pearsonhighered.com/fraser.)

(b) Using your analysis, list reasons for and against investment in Facebook's common stock.

The following excerpts are from the 2013 Form 10-K of Facebook, Inc.

(a) Analyze Facebook's financial statements and excerpts from the company's
(a) Analyze Facebook's financial statements and excerpts from the company's

Item 1. Business
Overview
Our mission is to give people the power to share and make the world more open and connected. We build technology to enable faster, easier and richer communication. Hundreds of millions of people use Facebook's websites and mobile applications every day to stay connected with their friends and family, to discover and learn what is going on in the world around them, and to share and express what matters to them to the people they care about.
Our business focuses on creating value for users, marketers, and developers.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Capital Structure
Capital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a...
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Related Book For  book-img-for-question

Understanding Financial Statements

ISBN: 978-0133874037

11th edition

Authors: Lyn Fraser, Aileen Ormiston

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