Question: Facebook Balance Sheet Twitter Balance Sheet 1. Contributed Capital. Use the balance sheet and the statement of stockholders equity to determine how the company has
Facebook Balance Sheet

Twitter Balance Sheet

1. Contributed Capital. Use the balance sheet and the statement of stockholders equity to determine how the company has structured its equity. What proportion of assets are financed with equity? What classes of equity does the company have? What transactions occurred during the year? Does the company have treasury stock? Read the MD&A and the footnotes to determine the main reason for holding treasury stock. Assess the treasury stock transactions during the year. How much was spent and/or received? What did the company do with the proceeds? Compare the average price paid for treasury shares to the current stock price. Does the company use sharebased compensation? What types of plans are used? What was the magnitude of the compensation? What is the magnitude of the outstanding (unvested) options and/or shares? Compare the level of treasury shares to outstanding (unvested) options and/or shares. Compute the market capitalization of the firms and compare to the book value of equity. Find an online source for the average markettobook ratio for the industry and see where the firms fit. Follow up on anything unusual. (PLEASE HELP).
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