Question: Obtain an annual report from a corporation that is interesting to you. Please ensure the company you choose has property and equipment, intangible assets, and long-term debt. Using techniques you have learned in the previous weeks, respond to the following questions:
1. Auditor's report
1) Who are the firm's auditors? Do they provide a clean opinion on the financial statements?
2) What other information is included in the company's annual report?
2. Balance sheet:
1) What are the company's three largest assets for the most recent year presented?
2) What are the company's three largest liabilities for the most recent year presented?
3) What types of stock does the company have? How many shares are there outstanding for each type of stock for the most recent year presented?
3. Income statement:
1) Does the company use the single-step or multiple-step income statement or a variation?
2) Does the income statement contain any separately reported items in any year presented, included discontinued operations or extraordinary items? If it does, describe the even that caused the item. Hint: there should be a related footnote.
3) Describe and comment on the trend in net income over the years presented.
4. Cash flow statement:
1) Does the company use the indirect or direct method of the cash flow statement? What is the difference between these two formats?
2) What are the 2 largest items included in cash from investing activities?
3) What are the 2 largest items included in cash from financing activities?
4) What non-cash transactions does the company have?
5) What is the trend in cash from operations for the years presented? Why do you think this trend exists
5. Footnotes:
1) What are the company's significant accounting policies for cash and cash equivalents?
2) What are the company's significant accounting policies for inventory?
3) What are the company's policies for depreciation (method, lives)?
4) What types of property and equipment does the company have? What is accumulated depreciation
5) What types of intangible assets does the company have?
6) What long-term liabilities does the company have? Please describe any loss contingencies the company has.
Please submit the completed project by Sunday at the end of Week 12 in Microsoft Word. The format of the report is to be as follows:
- Typed, double spaced, Times New Roman font (size 12), one inch margins on all sides.
- A title page is to be included. The title page is to contain the title of the assignment, your name, the instructor's name, the course title, and the date.
- Please attach the financial statement and footnotes (not the entire annual report) as a separate file
- Paper will also be graded for correct grammar and spelling.