Obtain an annual report from a corporation with which you are familiar. Some ideas to help get you started are:
- Microsoft, and
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?