Assignment

Obtain an annual report from a corporation that is interesting to you. Using techniques that you have learned of in the previous weeks, respond to the following questions.

1- Who are the firm's auditors? Do they provide a clean opinion on the financial statements?

2- Have there been any subsequent events, errors and irregularities, illegal acts, or related-party transactions that have a material effect on the financial statements?

3- Describe the trend in total assets and total liabilities for the years presented.

4- What are the company's three largest assets for the most recent year presented?

5- What are the company's three largest liabilities for the most recent year presented?

6- What types of stock does the company have? How many outstanding shares are there for each type of stock for the most recent year presented?

7- Does the company use the single-step income statement, multiple-step income statement, or a variation of both?

8- Does the income statement contain any separately reported items, including discontinued operations or extraordinary items, in any year presented? If it does, describe the event that caused the item. (Hint: There should be a related footnote.)

9- Describe the trend in net income over the years presented.

10- Does the company have other comprehensive income? If yes, what is the nature of the transaction(s)?

11- Does the company use the indirect or direct method of the cash-flow statement?

12- What is the trend in cash from operations for the years presented?

13- What are the two largest items included in cash from investing activities?

Give three references.