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Assignment 1: Delta Airlines Property, Plant, and Equipment
Due Week 8 and worth 200 points

According to the textbook, U.S. companies and foreign companies are affected by deprecation rules. When companies write off the cost of long-lived assets over a period of time, the term used is depreciation.

In order to complete this assignment, review Delta Airlines’ annual reports for the years 2012 and 2013, located at http://ir.delta.com/stock-and-financial/sec-filings/.

Write a five to six (5-6) page paper in which you:

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.

Your assignment must follow these formatting requirements:

• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
• Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

• Demonstrate, analyze, and explain the proper accounting for acquisition and valuation of property, plant, and equipment; valuation; costs subsequent to acquisition; and disposition of plant assets.
• Demonstrate, analyze, and explain the proper accounting for depreciation, impairments, and depletion.
• Use technology and information resources to research issues in intermediate accounting.
• Write clearly and concisely about intermediate accounting using proper writing mechanics.

Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills, using the following rubric.

Points: 200

Assignment 1: Delta Airlines Property, Plant, and Equipment

Criteria

 

Unacceptable

Below 60% F

Meets Minimum Expectations

60-69% D

 

Fair

70-79% C

 

Proficient

80-89% B

 

Exemplary

90-100% A

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.

Weight: 25%

Did not submit or incompletely briefly outlined Delta Airlines company’s history, products, and services, and identify the costs reported in the balance sheet for property, plant, and equipment. Did not submit or incompletely prepared a horizontal analysis of Delta’s property, plant, and equipment for 2012 and 2013. Did not submit or incompletely calculated the asset turnover ratio, return on asset ratio, and the debt to total assets ratio. Did not submit or incompletely indicated indicate the conclusions that you can draw, based on the changes in property, plant, and equipment, based on your calculations.

Insufficiently briefly outlined Delta Airlines company’s history, products, and services, and identify the costs reported in the balance sheet for property, plant, and equipment. Insufficiently prepared a horizontal analysis of Delta’s property, plant, and equipment for 2012 and 2013. Insufficiently calculated the asset turnover ratio, return on asset ratio, and the debt to total assets ratio. Insufficiently indicated indicate the conclusions that you can draw, based on the changes in property, plant, and equipment, based on your calculations.

Partially briefly outlined Delta Airlines company’s history, products, and services, and identify the costs reported in the balance sheet for property, plant, and equipment. Partially prepared a horizontal analysis of Delta’s property, plant, and equipment for 2012 and 2013. Partially calculated the asset turnover ratio, return on asset ratio, and the debt to total assets ratio. Partially indicated indicate the conclusions that you can draw, based on the changes in property, plant, and equipment, based on your calculations.

Satisfactorily briefly outlined Delta Airlines company’s history, products, and services, and identify the costs reported in the balance sheet for property, plant, and equipment. Satisfactorily prepared a horizontal analysis of Delta’s property, plant, and equipment for 2012 and 2013. Satisfactorily calculated the asset turnover ratio, return on asset ratio, and the debt to total assets ratio. Satisfactorily indicated indicate the conclusions that you can draw, based on the changes in property, plant, and equipment, based on your calculations.

Thoroughly briefly outlined Delta Airlines company’s history, products, and services, and identify the costs reported in the balance sheet for property, plant, and equipment. Thoroughly prepared a horizontal analysis of Delta’s property, plant, and equipment for 2012 and 2013. Thoroughly calculated the asset turnover ratio, return on asset ratio, and the debt to total assets ratio. Thoroughly indicated indicate the conclusions that you can draw, based on the changes in property, plant, and equipment, based on your calculations.

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.
Weight: 25%

Did not submit or incompletely determined the method or methods of depreciation that Delta Airlines uses to depreciate its property, plant, and equipment. Did not submit or incompletely suggested three (3) alternative methods that Delta Airlines could use in order to depreciate assets. Did not submit or incompletely proposed the method that Delta Airlines could use in order to improve the reporting of its property, plant and equipment, based on your suggestions. Did not submit or incompletely provided a rationale for your response.

Insufficiently determined the method or methods of depreciation that Delta Airlines uses to depreciate its property, plant, and equipment. Insufficiently suggested three (3) alternative methods that Delta Airlines could use in order to depreciate assets. Insufficiently proposed the method that Delta Airlines could use in order to improve the reporting of its property, plant and equipment, based on your suggestions. Insufficiently provided a rationale for your response.

Partially determined the method or methods of depreciation that Delta Airlines uses to depreciate its property, plant, and equipment. Partially suggested three (3) alternative methods that Delta Airlines could use in order to depreciate assets. Partially proposed the method that Delta Airlines could use in order to improve the reporting of its property, plant and equipment, based on your suggestions. Partially provided a rationale for your response.

Satisfactorily determined the method or methods of depreciation that Delta Airlines uses to depreciate its property, plant, and equipment. Satisfactorily suggested three (3) alternative methods that Delta Airlines could use in order to depreciate assets. Satisfactorily proposed the method that Delta Airlines could use in order to improve the reporting of its property, plant and equipment, based on your suggestions. Satisfactorily provided a rationale for your response.

Thoroughly determined the method or methods of depreciation that Delta Airlines uses to depreciate its property, plant, and equipment. Thoroughly suggested three (3) alternative methods that Delta Airlines could use in order to depreciate assets. Thoroughly proposed the method that Delta Airlines could use in order to improve the reporting of its property, plant and equipment, based on your suggestions. Thoroughly provided 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.

Weight: 25%

Did not submit or incompletely analyzed the information disclosed in Delta Airlines’ notes to their financial statements on property, plant, and equipment. Did not submit or incompletely recommended additional data that Delta Airlines could include that would be useful to potential investors and creditors.

Insufficiently analyzed the information disclosed in Delta Airlines’ notes to their financial statements on property, plant, and equipment. Insufficiently recommended additional data that Delta Airlines could include that would be useful to potential investors and creditors.

Partially analyzed the information disclosed in Delta Airlines’ notes to their financial statements on property, plant, and equipment. Partially recommended additional data that Delta Airlines could include that would be useful to potential investors and creditors.

Satisfactorily analyzed the information disclosed in Delta Airlines’ notes to their financial statements on property, plant, and equipment. Satisfactorily recommended additional data that Delta Airlines could include that would be useful to potential investors and creditors.

Thoroughly analyzed the information disclosed in Delta Airlines’ notes to their financial statements on property, plant, and equipment. Thoroughly recommended additional data that Delta Airlines could include that would be useful to potential investors and creditors.

4. 3 references

Weight: 5%

No references provided

Does not meet the required number of references, and / or references are of poor quality.

Meets the required number of references; some or all references poor quality choices.

Meets number of required references; all references high quality choices.

Exceeds number of required references; all references high quality choices.

5. Writing Mechanics, Grammar, and Formatting

Weight: 15%

Serious and persistent errors in grammar, spelling, punctuation, or formatting.

Numerous errors in grammar, spelling, and punctuation.

Partially free of errors in grammar, spelling, punctuation, or formatting.

Mostly free of errors in grammar, spelling, punctuation, or formatting.

Error free or almost error free grammar, spelling, punctuation, or formatting.

6. Appropriate use of APA in-text citations, reference section and format

Weight: 5%

Lack of in-text citations and / or lack of reference section.

In-text citations and references are given, but not in APA format.

In-text citations and references are provided, but they are only partially formatted correctly in APA style.

Most in-text citations and references are provided, and they are generally formatted correctly in APA style.

In-text citations and references are error free or almost error free and consistently formatted correctly in APA style.