Companies vary in the amount of information they disclose about their criteria for selecting capital investments. Access the websites of two companies— for example, Coca-Cola and International Paper. Find management’s discussion and analysis (also called the financial review), which precedes the presentation of the financial statements. In that section, find the discussion of capital investments. Which company provides the more in-depth discussion? Does either disclose its criteria for making capital investment decisions? Also, look at the investing activities listed in the statement of cash flows for each company. What is the extent of capital expenditures for each company? Compare each company’s capital investments with the amount of total assets on the balance sheet. Which company is more of a growth company? Explain your answe

Foundations of Business - Standalone book (MindTap Course List)
4th Edition
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Chapter15: Using Management And Accounting Information
Section: Chapter Questions
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Companies vary in the amount of information they disclose about their criteria for selecting capital investments. Access the websites of two companies— for example, Coca-Cola and International Paper. Find management’s discussion and analysis (also called the financial review), which precedes the presentation of the financial statements. In that section, find the discussion of capital investments. Which company provides the more in-depth discussion? Does either disclose its criteria for making capital investment decisions? Also, look at the investing activities listed in the statement of cash flows for each company. What is the extent of capital expenditures for each company? Compare each company’s capital investments with the amount of total assets on the balance sheet. Which company is more of a growth company? Explain your answer.

 

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