Obtain an annual report from a corporation with which you are familiar. Some ideas to help get you started are:
Respond to the following questions using what you learned in this lesson and any analysis you consider useful:
Which annual report did you choose?
What type of opinion did the auditors provide on the financial statements?
Were any changes adopted in any accounting methods?
Were there any subsequent events, errors and fraud, illegal acts, or related-party transactions that have a material effect on the company’s financial position?
What are two trends in the company’s operations or capital resources that management considers significant to the company’s future?
Does the company engage in more than one significant line of business? If so, compare the relative profitability of the different segments.
How stable are the company’s operations?
Has the company’s situation deteriorated or improved with respect to liquidity, solvency, asset management, and profitability?