TOPIC: Section B: Marketplace: Media & Marketing Section - Finance Related (~B6f) Purpose: This project is intended to be a relatively fun and simple activity to introduce you to the key features and sections of the Wall Street Journal (WSJ), a major daily publication in the business and finance world. The project will provide the opportunity for you to monitor some current financial news and to gain an awareness and understanding of several of the different financial and business news items provided in the WSJ. This project will also build confidence for MBA students regarding the WSJ. As a side note: The WSJ activity is intended to be a reasonable fun/easy opportunity to review & report on various feature sections of the WSJ.  Please don't make this activity harder than it is intended to be.  You do not have to answer every detail about the section you select, but provide a decent overall review -- do work you are proud of & appropriate for graduate students, but don't make this overly burdensome. Project (Essentially 3 steps/tasks): TASK #1 of 3 = Each individual should SELECT their own WSJ REGULAR FEATURE / SECTION / TOPIC AREA from the WSJ. Examples of regular WSJ features are provided in the list near the end of this document. If you find a regular WSJ feature item that is not included in the list, you may select it, though it should be a regular feature (not a one-time article). Each individual should have their own individual topic. You may simply select a topic, but BE CREATIVE & ADVENTURESOME to add variety to the class. TASK #2 of 3 = Chapters and Appendices = YOUR INDIVIDUAL REPORT on that FEATURE = 2 page report + appendix: Once each individual selects their own feature topic, then each person should prepare their own 2 page text report that explains and presents the essence of the particular WSJ feature they are reviewing, plus some appendices as noted below. The objective of each member’s individual 2 page report is to efficiently & effectively communicate a GENERAL message regarding what the WSJ feature section is about, as well as key and interesting insights presented in the section and gained through your work. An example is provided at the end of this document. As noted above, this WSJ activity is NOT an “article review”, but rather is a review in general terms of the specific WSJ feature/topic section that you have picked, along with a brief summary of some specific observations (that you select) from the feature (See “Appendix A” below.). Note that this is NOT a "research" paper per se, but rather your review/report should explain the essence of the particular topic. In most all instances, the essence of a topic can be ascertained by your observation (reading & thinking through it). For some items 2 pages will be more than adequate, while for others it will be a challenge to organize the material in only 2 pages. You must be selective in what you choose to include. Information you should incl ...

1. TOPIC: Section B: Marketplace: Media & Marketing Section -
Finance Related (~B6f)
Purpose:
This project is intended to be a relatively fun and simple
activity to introduce you to the key features and sections of the
Wall Street Journal (WSJ), a major daily publication in the
business and finance world. The project will provide the
opportunity for you to monitor some current financial news and
to gain an awareness and understanding of several of the
different financial and business news items provided in the
WSJ. This project will also build confidence for MBA students
regarding the WSJ.
As a side note: The WSJ activity is intended to be a reasonable
fun/easy opportunity to review & report on various feature
sections of the WSJ. Please don't make this activity harder than
it is intended to be. You do not have to answer every detail
about the section you select, but provide a decent overall review
-- do work you are proud of & appropriate for graduate
students, but don't make this overly burdensome.
Project (Essentially 3 steps/tasks):
TASK #1 of 3 = Each individual should SELECT their own WSJ
REGULAR FEATURE / SECTION / TOPIC AREA from the
WSJ. Examples of regular WSJ features are provided in the list
near the end of this document. If you find a regular WSJ
feature item that is not included in the list, you may select it,
though it should be a regular feature (not a one-time article).

2. Each individual should have their own individual topic.
You may simply select a topic, but BE CREATIVE &
ADVENTURESOME to add variety to the class.
TASK #2 of 3 = Chapters and Appendices = YOUR
INDIVIDUAL REPORT on that FEATURE = 2 page report +
appendix: Once each individual selects their own feature topic,
then each person should prepare their own 2 page text report
that explains and presents the essence of the particular WSJ
feature they are reviewing, plus some appendices as noted
below. The objective of each member’s individual 2 page report
is to efficiently & effectively communicate a GENERAL
message regarding what the WSJ feature section is about, as
well as key and interesting insights presented in the section and
gained through your work. An example is provided at the end
of this document.
As noted above, this WSJ activity is NOT an “article review”,
but rather is a review in general terms of the specific WSJ
feature/topic section that you have picked, along with a brief
summary of some specific observations (that you select) from
the feature (See “Appendix A” below.).
Note that this is NOT a "research" paper per se, but rather your
review/report should explain the essence of the particular topic.
In most all instances, the essence of a topic can be ascertained
by your observation (reading & thinking through it). For some
items 2 pages will be more than adequate, while for others it
will be a challenge to organize the material in only 2 pages.
You must be selective in what you choose to include.
Information you should include, as appropriate and as it applies
for the topic being reviewed:
* what the WSJ Feature, section, item and/or topic is, what it is

3. generally about, and what information is GENERALLY being
presented. For topics that are not directly finance material, such
as headlines or other general WSJ sections, you should focus on
finance implications of the news & information being presented.
These finance implications may not be obvious to someone not
aware of finance principles/topics, but you will generally be
able to see some financial implications and/or relationships with
most of the material.
* what is its purpose of the information,
* what is the presentation scheme (i.e. quotation scheme, in the
case of say “stock quotes) used in the WSJ and what does it
mean, (i.e. what tables, column headings, graphs etc. are used in
the quotations & presentation of the information),
* approximately how often, when and where in the Journal is it
reported,
* what major news was reported during the semester and
* its significance (i.e. is it important for general knowledgeable
or is it a specialized topic),
* how "specific" it is (i.e. is it firm specific or more of an
economic/market wide summary).
* The above is not an exhaustive list and you should include
any other characteristic deemed note worthy.
Thoughts:
That said, some general thoughts regarding formatting &
presentation are:....
-- you should INDENT your paragraphs, 1 inch is
conventional. If you don't, it is frequently NOT clear where
one paragraph ends & another starts.
-- please used double spaced format, except as appropriate
within tables or table captions.
-- you should use SECTION HEADINGS & SUB-HEADINGS as

4. appropriate; along with a table of contents.
-- you should use PAGE NUMBERS (upper right is my general
preference, along with a 2-3 word heading of the paper content.
-- you should use a SEPARATE page for cover page, table of
contents, and for beginning new major sections of a paper.
-- all tables, graphs or figures should have CAPTIONS and
should be referred to (discussed) within the text of your main
body report.
-- you should use appendices for interesting, supporting
information, tables, graphs, figures etc. that would disrupt the
"nice" flow of the main body & are not critical to the flow of
the main body.
-- you should have a bibliography at the end that alphabetically
(authors/sources last name, then source info) lists all sources
and contacts used to create your report.
-- you should cite sources (author date) within the main body
for all quotation or key facts/observations from other sources.
-- you should evaluate your use of PARAGRAPHS and
transitions of thought, from paragraph to paragraph, as well as
from section to section (within a feature’s report, i.e. within a
chapter). Try to make the main body FLOW well & "make
sense". Avoid LONG PARAGRAPHS. Remember, a paragraph
should have 1 (and only 1) main idea & main sentence.
Sometimes I get paragraphs that are 2+ pages long -- bad idea
== poor writing.
-- there does NOT have to be a connection between “chapters”
that are reviewing separate features (topics/sections) of the
WSJ, since each topic essentially “stands alone”.
-- consistency: Margins & fonts should generally be consistent
throughout the entire report (unless have to have smaller for
some tables).
These are some of the key things to have a generally
professionally prepared paper.
EXAMPLE of an Individual Review (Chapter):

5. The following is an example of how an individual “chapter” can
be prepared. This example may be a bit too literal in the
presentation at times, but overall is a relatively good example of
the basic structure and nature of the individual chapters on the
specific WSJ feature sections.
Although “Getting Going” is an excellent section to monitor and
review, since this was provided as an example, you should not
select the “Getting Going” feature for your report section.
Chapter X: Getting Going – Student’s First & Last Name
The Getting Going section was introduced as part of the
Personal Journal on April 9, 2002 and is published on Tuesdays
in the Wall Street Journal (WSJ). The column has been in
existence since October 1994. It is part of a larger column
known as the Personal Journal section of the Wall Street
Journal. The Personal Journal section is provided to readers on
Tuesday through Thursday and provides its readers with
information regarding personal investments, careers, breaking
news coverage, and cultural pursuits. The Personal Journal
section is known as the “D” portion of the WSJ. The Getting
Going column is located on the front page of the Wall Street
Journal Personal Journal section. September 2004 the WSJ
decided to expand because of the popularity of the Personal
Journal and the Weekend Journal appeared as an addition to the
Wall Street Journal.
The Personal Journal section of the Wall Street Journal features
one area that is the focus of section D1. The in-depth areas that
are usually the focus include Style & Home, Personal Finance,
Health & Travel, and Home & Family. While continuing to
focus on breaking-news coverage, Personal Journal will also
have weekly columns including:
· “Health Tuesday”; a column which deals all manners of
health.
· “Personal Finance Wednesday”; a column which offers advice
for high-net-worth individuals as well as track new products and
services from brokerage companies.

6. · “Home and Family Thursday”; a column featuring a weekly
entertainment column and more coverage of home technology in
areas such as entertainment systems and appliances.
News coverage was also expanded for Personal Journal's other
core areas including cars, gadgets and travel. Articles in Section
D of the Wall Street Journal offers a full spectrum from “Why
It’s Hard to Give Away a Kidney”, to “Finding Daycare for
Your Parents”, and even, “Automatic 401(k) Plans Might Not
Save Enough”.
Getting Going is published every Tuesday and provides readers
with advice regarding getting finances on track and keeping
them that way. Need advice on diversifying your portfolio?
Want to find a good financial advisor? Have I got enough to
retire? This is the column for you. The column is authored by
personal finance columnist Jonathan F. Clements, a senior
writer for the Wall Street Journal. The column is known for
providing readers that are investing $4000 to 4 million dollars
the basic principles of investing in a concise manner.
With a possible recession looming, the most important story of
the semester is titled “What’s a Small Investor to Do: Five
Good Reasons Stocks Are Attractive Despite Downdraft.” It
addresses the fears of small investors regarding maintaining
one’s sanity and how to bounce back from the volatility of the
current market. This article states those with a balance portfolio
with 60% stocks and 40% bonds will have losses, however it is
minor and should not be cause for panic. Mr. Clements also
discusses losing streaks in our history where the S & P 500 was
down 16%. Bonds and money-market funds are also offering the
low yields of 3.5%, while money market funds have been paying
around 4%. Stocks are the best choice for the income hungry
investor. The article states the further stocks fall, the riskier
they seem to investors; however the decline in value makes
stocks less risky, because they are a better value. If stocks keep
falling, keep buying to maintain a full stock-market weighting.
This portion of the WSJ was selected for review because the
Personal Journal sections covered a variety of different topics

7. that assist in decision making for everyday practical use by
families or investors.
NOTE: The appendix should begin on a NEW page, but I
deleted the page break here.Chapter Three Appendix
Getting Going Observation 1: Clements, Jonathan, December
12, 2007. How to Stop Your Emotions from Wrecking Your
Returns. Wall Street Journal, Page D1
This article reports on how the ever-changing market takes
an emotional toll on investors and what they can do to make
smart decisions regarding investments instead of emotional
decisions. Key pointers include waiting a week before making
major portfolio decisions, place investing on auto pilot by
signing up for 401(k) payroll deductions, and favoring
diversified investments such as target date funds. This
particular article for me touched on market efficiency
specifically informational efficiency and the efficient markets
hypothesis (EMH). I believe that with all the ups and downs of
the market in recent months, it is very possible that investors
could make rash decisions based on information received.
Getting Going Observation 2: Smart Money Stock Screen: Price
Sales Ratio. Wall Street Journal, Page D3
Focuses on a company called Kendle International, a drug
development company that oversees trials from the start of
human testing through surveillance after launch. The market for
clinical trials is expected to surge and research spending is
expected to increase, thereby increasing price/sales ratio. An
increased sales growth leads to “handsome” stock returns. I
have included eight companies that show strong sales
momentum and low prices/sales ratio. Price/sales (P/S) ratio is
directly related to P/E ratio and used to measure the
performance of a company or to accomplish a company
comparison.

8. Industry
Price
Market Capitalization
YTD Price Change
Price/Sales Ratio
Computer Peripherals
$ 19.34
15,076
43%
1.2
Industrial Electrical Equip
$ 37.27
1710
12
1.1
Aerospace/Defense
$ 51.60
1332
28
1
Insurance Brokers
$ 27.34
1163
1.3
0.7
Drug Trials
$ 47.71
697
52
1.3
CATV Systems
$ 14.06
314
17
0.3
Heavy Construction

9. $ 53.57
1446
74
0.3
Grocery Stores
$ 40.36
8591
13
0.2
Getting Going Observation 3: Hechinger, John. January 17,
2008. College Endowments Post 16.9% Return. Wall Street
Journal, Page D4
College endowments posted an average investment return of
16.9%, the strongest return since at least 2000. In recent years
colleges have chosen alternative strategies such as hedge funds
and venture-capital funds, colleges have poured their funds into
hedge funds and venture –capital funds, instead of the
traditional mixes of investment portfolios included stocks,
bond, and cash. The alternative investments are generally
available only to wealthy individuals and institutions such as
Yale and Harvard. Colleges also benefited from placing 1/5th of
their assets into international stocks. This article addresses
returns on a diversified portfolio that includes stocks, bonds,
hedge funds etc. produced modest returns for college
endowments. It also provides a mix of risky investments with
less risky assets.
Getting Going Observation 4: McCartney, Scott. January 15,
2008. The Middle Seat: Mergers Benefit Airlines, Shame About
the Fliers. Wall Street Journal, Page D1
This article discusses the effects of mergers of airline

10. companies on airlines and customers. Delta Airlines is
considering a merger between United Airlines or Northwest
Airlines. Benefits of a merger for companies include increased
stronger networks and increased revenues. Customers are left
with increased airline ticket prices, flight delays, possible
increased baggage lost, as well as changes in frequent flier
programs. "Airline mergers help stockholders and the company,
but not consumers," said Paul Hudson, executive director of the
Aviation Consumer Action Project, a nonprofit group. I realize
this is an unlikely topic, however, the effects of merger and
acquisitions on shareholder wealth is important, however its
effects on the consumer I believe are just as important. It
affects the companies’ brand name as well as customer loyalty.
“We are focused on… helping people share information“
—MARK ZUCKERBERG
PALO ALTO, CA—“Open Society” conjures up philosophical
thoughts and political ideologies. However,
for Mark Zuckerberg, his vision of an open society “is to give
people the power to share and make the
world more open and connected.” That vision led Mark to create
Facebook (Facebook.com) from his
college dorm. Today, Facebook is the highest-profile social
networking site. Along the way, Mark had to

11. learn accounting and the details of preparing and interpreting
financial statements.
“It’s all been very interesting,” says Mark. Important questions
involving business formation, transaction
analysis, and financial reporting arose. Mark answered them and
in the process has set his company
apart. “I’m here to build something for the long term,” declares
Mark. “Anything else is a distraction.”
Information is the focus—both within Facebook and within its
accounting records. Mark recalls that
when he launched his business, there were “all these reasons
why they could not aggregate this
*personal+ information.” He took a similar tactic in addressing
accounting information. “There’s an
intense focus on… information, as both an ideal and a practical
strategy to get things done,” insists
Mark. This includes using accounting information to make key
business decisions.
While Facebook is the language of social networking,
accounting is the language of business networking.
“As a company we are very focused on what we are building,”
says Mark. “We are adding a certain

12. amount of value to people’s lives if we build a very good
product.” That value is reflected in its financial
statements, which are based on transaction analysis and
accounting concepts.
Facebook’s success is reflected in its revenues, which continue
to grow and exhibit what people call the
monetizing of social networking. “Social Ads are doing pretty
well,” asserts Mark. “We are happy with
how we are doing in terms of numbers of advertisers and
revenue.” Facebook also tracks its expenses
and asset purchases. “We expect to achieve… profitability next
year,” states Mark. “It means we will be
able to fund all of our operations and server purchases from the
cash we generate.” This is saying a lot
as Facebook’s operating expenditures must support nearly 1
billion photo uploads and 8 million video
uploads per day.
Mark emphasizes that his financial house must be in order for
Facebook to realize its full potential—and
that potential is in his sights. “We believe really deeply that if
people are sharing more, then the world
will be a more open place where people can understand what is
going on with the people around them.”

13. [Sources: Facebook Website, January 2011; CNN, October
2008; Mercury News, April 2009;
VentureBeat, March 2008; FastCompany.com, May 2007;
Wired, June 2009]
Assume that Mark Zuckerberg decides to open a new Website
devoted to social networking for
accountants and those studying accounting. This new company
will be called AccountBook.
Required:
Prepare a business memo in Word addressed to Mark
Zuckerberg discussing the following:
1. AccountBook obtains a $500,000 loan and Mark Zuckerberg
contributes $250,000 of his own assets in
exchange for common stock in the new company.
a. What is the new company’s total amount of liabilities plus
equity?
b. What is the new company’s total amount of assets?

14. 2. If the new company earns $80,000 in net income in the first
year of operation, compute its return on
asset (assume average assets equal $750,000). Assess its
performance if competitors average a 10%
return.