You have been promoted to a member of the management team in Fullhealth's financial department. You have hired a new staff member who is to assist you in preparing materials for the next Board of Directors meeting in which the annual financial reports will be presented.

Write an e-mail to your new employee that explains the components and the process of creating an annual report. Focus strongly on how accounting inputs are formulated into financial reports and statements for the organization. The memo should include three of the following annual reporting components:

Chairman of the Board Letter
sales and marketing
10-year summary of financial figures
management discussion and analysis
CPA opinion letter
financial statements (balance sheet, check sales, profits, R&D spending, inventory and debt levels over time)
subsidiaries, brands, and addresses
list of directors and officers
market cap = number of shares x share price
price to book = market cap / shareholders' funds
price to sales = market cap / annual sales
profit margin = profit after tax / annual sales
P/E ratio = market cap / profit after tax
gearing = net debt / shareholders' funds
Enterprise Value (EV) = market cap plus debt (or minus cash)
EV / cash flow = Enterprise Value / operating cash flow