Discussion:
Please discuss all six questions listed below as they relate to the financial statements of any U.S. public company of your choice in its latest annual report. You can find the financial statements of any U.S. public company by visiting Morningstar, Yahoo Finance or MSN Money, and using the stock market symbol for your chosen company (which can be looked up on Morningstar, Yahoo Finance or MSN Money). If you work for a U.S. public company, you may want to use the financial statements of your company - but the choice is up to you.
It is useful to compare financial ratios for a company with financial ratios of its industry. Industry financial ratios can be found on Morningstar.com, Yahoo Finance and MSN Money. The questions are as follows:
1) What 3 items of important information does the income statement reveal about the financial performance of the company over the last three years?
2) What 3 items of important information does the balance sheet reveal about the financial position of the company over the last two years?
3) Can you identify the major sources of funding used by the company from the information presented in the company's annual report? If not, how could you get this information?
4) Who is responsible for:
a) the issuance, and
b) the content
of the company financial statements?
5) What assurance, if any, is there that the financial statements are in compliance with GAAP, and are free of material misstatements?
6) Of what use, if any, are the notes to the financial statements?