How does each company calculate depreciation/amortization on its long-term assets?
Learning Goal: I’m working on a finance writing question and need an explanation and answer to help me learn.Answer the following questions accoring to Blackrock and Morgan Stanley’s annul reports (attached)Questions in bold are worth in the aggregate 75% of the total scoreWhat is management’s compensation? How does it compare with the previous 2 years? Is overall compensation in line with the company’s performance?
Please perform a common size balance sheet analysis for both companies for the most recent two FYs. How are they similar? Different? What difference, in your analysis, accounts for any difference income between the companies and why? Internally, how do the balance sheets compare FY to FY? Which company is a better long-term credit risk? Why?
How does each company calculate depreciation/amortization on its long-term assets? How does each account for doubtful/uncollectable receivables?
In what sense are these two companies competitors? Do they compete for the same customers; do they offer the same products/services; are they in the same industry; do they occupy different market niches; do they offer two different solutions to the same customer need or desire? What advantages/disadvantages does each company see relative to the other and to the overall competitive environment?
Please review the accounting policies section of the notes to the financial statements and describe how the companies differ in their financial reporting practices.
Requirements: Calibri 12 font single space 2+ pages | .doc file