1) Briefly outline Delta Airlines company’s history, products, and services, and identify the costs reported in the balance sheet for property, plant, and equipment. Prepare a horizontal analysis of Delta’s property, plant, and equipment for 2012 and 2013. Next, calculate the asset turnover ratio, return on asset ratio, and the debt to total assets ratio. Based on your calculations, indicate the conclusions that you can draw, based on the changes in property, plant, and equipment.
2) Determine the method or methods of depreciation that Delta Airlines uses to depreciate its property, plant, and equipment. Suggest three (3) alternative methods that Delta Airlines could use in order to depreciate assets. Based on your suggestions, propose the method that Delta Airlines could use in order to improve the reporting of its property, plant and equipment. Provide a rationale for your response.
3) Analyze the information disclosed in Delta Airlines’ notes to their financial statements on property, plant, and equipment. Recommend additional data that Delta Airlines could include that would be useful to potential investors and creditors.
4) Use at least three (3) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources
Delta Airlines Property, Plant, and Equipment
May 30th, 2016