This document provides questions and answers about a company's annual report (10-K) and quarterly reports (10-Qs) to analyze its financial statements. It asks the reader to identify the company's nature of business, major assets, revenue and expense items, cash flows, and financing. The accounting equation is demonstrated and the roles of management, auditors, and potential financial statement users are discussed. Key dates from the annual and quarterly reports are listed, along with audit opinions and their implications. The document aims to have the reader understand how the company makes money by analyzing trends and balances in its financial statements.
This document provides questions and answers about a company's annual report (10-K) and quarterly reports (10-Qs) to analyze its financial statements. It asks the reader to identify the company's nature of business, major assets, revenue and expense items, cash flows, and financing. The accounting equation is demonstrated and the roles of management, auditors, and potential financial statement users are discussed. Key dates from the annual and quarterly reports are listed, along with audit opinions and their implications. The document aims to have the reader understand how the company makes money by analyzing trends and balances in its financial statements.
This document provides questions and answers about a company's annual report (10-K) and quarterly reports (10-Qs) to analyze its financial statements. It asks the reader to identify the company's nature of business, major assets, revenue and expense items, cash flows, and financing. The accounting equation is demonstrated and the roles of management, auditors, and potential financial statement users are discussed. Key dates from the annual and quarterly reports are listed, along with audit opinions and their implications. The document aims to have the reader understand how the company makes money by analyzing trends and balances in its financial statements.
This document provides questions and answers about a company's annual report (10-K) and quarterly reports (10-Qs) to analyze its financial statements. It asks the reader to identify the company's nature of business, major assets, revenue and expense items, cash flows, and financing. The accounting equation is demonstrated and the roles of management, auditors, and potential financial statement users are discussed. Key dates from the annual and quarterly reports are listed, along with audit opinions and their implications. The document aims to have the reader understand how the company makes money by analyzing trends and balances in its financial statements.
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Understanding Financial Statements
Group #/Name Company Name As of Date of 10K filing Questions What is the nature of this companys business?
Answers
Based on the information you know per the
financial statements, how does this company make money?
How often does your publicly traded
corporations typically prepare financial statements for external reporting purposes? List the dates of the most recent ones. Annual Report 10-K ______________________ 3Q 10-Q ______________________ 2Q 10-Q ______________________ 1Q 10-Q ______________________ 6 most recent 8-Ks (Date, Topic) _______________
______________________
_______________
______________________
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______________________
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______________________
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______________________
_______________
______________________
Who is responsible for the financial
statements? (Hint: Look at signature page)
Discuss the potential users of this
companys financial statements and what kind of information the user is interested in.
Who are this companys external auditors?
Year End Date
____________________________
External auditors ___________________________ _________________________________________ Describe the two opinion letters that this company received and in your own words, describe what these opinions mean. Why are both opinions dated several months after the companys year-end? State the date of the opinion.
City______________________________________
Audit Opinion
Date__________________________ Refer to the companys balance sheet for the year-end. 1. Demonstrate that the accounting equation holds for this company. (Assets=Liabilities + Equity) 2. What are this companys major assets? Calculate the proportion of short-term and long-term assets for the fiscal year. Does this seem appropriate for the type of company this is?
_____________ = __________ + _____________
Assets Liability Equity Major Assets _____________________
$______________
_____________________
$______________
_____________________
$______________
% Short term ___________
% Long term ___________
3. What specific intangible assets does
this company have?
4. How is this company financed? What
proportion of total financing comes from non-owners?
Refer to the companys statement of
earnings for the year-end: 1. Review the revenue recognition policies of the company. Where in the footnotes do you find this? Does the company record revenue when they receive cash from their customers (cash-basis) or do they follow a different method? Are there any challenges in measuring revenue?
