ANALYZING THE BALANCE SHEET Objective: Understand and interpret amounts reported on the Balance Sheet (Php in...

Transcribed Image Text:

ANALYZING THE BALANCE SHEET Objective: Understand and interpret amounts reported on the Balance Sheet (Php in 000s) Cash Account Receivable Inventories Other Current Assets Property, Plant, And Equipment Accumulated Depreciation Deposits and other assets Total Assets Accounts Payable Current portion of long-term debt Accrued Expenses Other Current Liabilities Long Term -Debt Deferred Charges/Income Common Stock par NORTHWEST AIRLINES COMPANY Additional Paid-In Capital Retained Earnings Treasury Stock 1/30/2021 1/31/2020 623,343.00 76,530.00 52,376.00 54,167.00 4,811,324.00 1,375,631.00 4.051.00 4,246,160.00 157,415.00 11,996.00 477,448.00 203,794.00 623,309.00 844,116.00 335,904.00 89,820.00 155,696.00 2,044,975.00 1,632,115.00 -0- 72,781.00 Total Liabilities and Stockholders' Equity 4,715,996.00 4,246,160.00 378,511.00 88,799.00 50,035.00 56,810.00 5,739,019.00 1,601,409.00 4,231.00 4,715,996.00 160,891.00 121,324.00 432,957.00 153,341.00 628,106.00 740,523.00 221,207.00 2/01/2019 581,841.00 73,440.00 51,094.00 44,615.00 4,157,628.00 1,188,405.00 3,266.00 3,723,479.00 214,232.00 12,327.00 380,747.00 158,098.00 650,226.00 659,537.00 145,112.00 181,650.00 1,321,550.00 -0- 3,723,479.00 2/03/2018 317,363.00 79,781.00 41,032.00 34,960.00 3,784,388.00 1,005,081.00 3,679.00 3,256,122.00 116,530.00 13,516.00 349,419.00 131,156.00 661,010.00 557,173.00 144,033.00 162,704.00 1,120,581.00 -0- 3,256,122.00 Questions: Refer to the series of balance sheets presented for NORTHWEST AIRLINES COMPANY to answer the following questions. 1. Total assets have (increased/decreased by % since 2018. 2. Retained earnings has (increased / decreased) by % since 2018. 3. Compute the Book Value of the Property, and Plant and Equipment for each year and then comment on the results. 4. Compute the current ratio for each year and then comment on the results. 5. Compute the Debt-Ratio for each year and then comment on the results. 6. Review the series of balance sheets presented for Northwest Airlines and comment on at least two items of significance. 7. Review the series of balance sheet presented for Northwest Airlines and comment on at least one item that you find interesting. ANALYZING THE BALANCE SHEET Objective: Understand and interpret amounts reported on the Balance Sheet (Php in 000s) Cash Account Receivable Inventories Other Current Assets Property, Plant, And Equipment Accumulated Depreciation Deposits and other assets Total Assets Accounts Payable Current portion of long-term debt Accrued Expenses Other Current Liabilities Long Term -Debt Deferred Charges/Income Common Stock par NORTHWEST AIRLINES COMPANY Additional Paid-In Capital Retained Earnings Treasury Stock 1/30/2021 1/31/2020 623,343.00 76,530.00 52,376.00 54,167.00 4,811,324.00 1,375,631.00 4.051.00 4,246,160.00 157,415.00 11,996.00 477,448.00 203,794.00 623,309.00 844,116.00 335,904.00 89,820.00 155,696.00 2,044,975.00 1,632,115.00 -0- 72,781.00 Total Liabilities and Stockholders' Equity 4,715,996.00 4,246,160.00 378,511.00 88,799.00 50,035.00 56,810.00 5,739,019.00 1,601,409.00 4,231.00 4,715,996.00 160,891.00 121,324.00 432,957.00 153,341.00 628,106.00 740,523.00 221,207.00 2/01/2019 581,841.00 73,440.00 51,094.00 44,615.00 4,157,628.00 1,188,405.00 3,266.00 3,723,479.00 214,232.00 12,327.00 380,747.00 158,098.00 650,226.00 659,537.00 145,112.00 181,650.00 1,321,550.00 -0- 3,723,479.00 2/03/2018 317,363.00 79,781.00 41,032.00 34,960.00 3,784,388.00 1,005,081.00 3,679.00 3,256,122.00 116,530.00 13,516.00 349,419.00 131,156.00 661,010.00 557,173.00 144,033.00 162,704.00 1,120,581.00 -0- 3,256,122.00 Questions: Refer to the series of balance sheets presented for NORTHWEST AIRLINES COMPANY to answer the following questions. 1. Total assets have (increased/decreased by % since 2018. 2. Retained earnings has (increased / decreased) by % since 2018. 3. Compute the Book Value of the Property, and Plant and Equipment for each year and then comment on the results. 4. Compute the current ratio for each year and then comment on the results. 5. Compute the Debt-Ratio for each year and then comment on the results. 6. Review the series of balance sheets presented for Northwest Airlines and comment on at least two items of significance. 7. Review the series of balance sheet presented for Northwest Airlines and comment on at least one item that you find interesting.