Financial Accounting Project - Ratio Analysis of Current Liabilities

Ratio Analysis and Fixed Assets

Esther Tejada

Rasmussen College

Author Note

This paper is being submitted on October 29, 2014, for Esther Tejada

A141/ACG1033 Section 07 Financial Accounting II - 2014 Fall Quarter

The majority of long-term assets consist of property, plant, and equipment and intangibles. These assets are capitalized on the balance sheet and depreciated on the income statement over their estimated useful lives.

Refer to the annual report of the company (see attached) you've selected to analyze. Research and answer the following: 

1. What are the balances of net property, plant, and equipment at the company's year-end for the two most recent years you are researching?

(TRANSDIGM Group Annual Report, Consolidated Balance Sheet, 2013)

2. Referring to the notes to the financial statements, what depreciation methods did the company use? What were the estimated useful lives of the assets? What kinds of intangible assets does the company own?

The deprecation method used for property plant equipment was straight line method. Useful lives were as follows:

Intangible assets included Goodwill, Trademarks and Trade names, Technology, Order Backlog and Others.

(TRANSDIGM Group Annual Report, Notes to Financial Statements, 2013)

3. Calculate the percent of net fixed assets compared to total assets for the company for the two most recent years you are researching? The formula for this calculation is Net Fixed Assets divided by Total Assets.

References

216.139.227.101,. (2014). TransDigm Group Inc. Annual Report 2013. Retrieved 23 October 2014, from http://216.139.227.101/interactive/tdg2013/