Long-Term Assets (Assignment 8) Assignment Example | Topics and Well Written Essays - 500 words

Long-Term Assets ( 8) - Assignment Example Generally, the company recorded a positive change in its long term assets which is a positive thing. However, the financial statements and notes to the financial statements of Pentair Inc do not disclose vital information such as accumulated depreciation. Instead, the company has computed the combined values which make it impossible to identify specific information. Does your firm report any intangible assets on the balance sheet? If yes, describe the policies, e.g., method and estimated life, your firm uses to compute amortization expense. YES. Pentair Inc uses the unit-of-activity method in the amortization of intangible assets such as patents. The company provides for an estimated useful life of five years ending in the year 2017. If yes, describe the acquisitions or disposals that occurred. In April 2012, Pentair acquired Sibrape including its subsidiary at a cost estimated to be $21.5 million. However, the company did not record any disposals during the same period. How do your firms long-term asset ratios compare to those of your comparison firms? Are they high, low, about the same? Is there anything specific about your firm, its industry, or your comparison firms or industries that tend to explain the differences between your companys long-term asset ratios and those of the other firms? Discuss and explain. Pentair’s long-term ratios are almost the same to those of comparative firms. This is because most of the ratios among the firms are within the same range. However, there are some slight differences between the ratios and this can be attributed to the difference in the sizes of the firms and how they manage their long-term assets. Bigger and well managed firms have higher long-term assets ratios compared to other firms. In most cases, the size of a firm is measured by the level of its revenues or assets. In this case, we can measure the size of a