Obtain an annual report from a corporation that is interesting, respond to the following problems.
Who are the firm's auditors? Do they provide a clean opinion on the financial statements?
Have there been any subsequent events, errors and irregularities, illegal acts, or related-party transactions that have a material effect on the financial statements?
Describe the trend in total assets and total liabilities for the years presented.
What are the company's three largest assets for the most recent year presented?
What are the company's three largest liabilities for the most recent year presented?
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?
Does the company use the single-step income statement, multiple-step income statement, or a variation of both?
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.)
Describe the trend in net income over the years presented.
Does the company have other comprehensive income? If yes, what is the nature of the transaction(s)?
Does the company use the indirect or direct method of the cash-flow statement?
What is the trend in cash from operations for the years presented?
What are the two largest items included in cash from investing activities?