9.   What is the company’s current ratio? (Current Ratio = Current assets / Current liabilities) Please provide the numbers you used to calculate the ratio. (2pt)

10. What is the company’s debt-to-total assets ratio? (Debt to total assets ratio = Total

liabilities / Total assets) Please provide the numbers you used to calculate the ratio. (2pt)

11. Does the company have net income or net loss on the income statement (also referred to as statement of operations)?  (1pt)

12. Did the company make more net income in the current year or the prior year? (1pt)

13. What were some of the investing activities the company participated in during the current year? Refer to the statement of cash flows. (1pt)

14. What were some of the financing activities the company participated in during the current year? Refer to the statement of cash flows. (1pt)

15. Does the company have a cash inflow or outflow in operating activities and what does this mean? Refer to the statement of cash flows. (2pts)

16. If the company has property, plant and equipment, what are the estimated useful lives they use for each category of these assets? Also, what is the amount of accumulated depreciation for the current year? Note, this information will be in the footnotes. (2pts)

17. Does the company sell inventory? If so, read through their footnote on inventory. Discuss one thing you learned. If the company does not have a footnote about inventory, pick any other footnote to read and summarize what you learned. (1pt)

18. In the management’s discussion and analysis section, read through the comparison of the current year and prior year revenue. Tell me what you learned. (2pts)

19. Explain a few things that you learned about this company while navigating through the various disclosures in their annual financial statements. Is there anything you were hoping to learn but didn’t? (2 pts)

Submitting the assignment:

This assignment will be submitted via canvas. Please copy and paste the questions above into a word document and include your answer to each when submitting via canvas. This assignment is due by Sunday March 3rd at 11:59 PM.

Grading:

This assignment is worth 25 points and no late submissions will be accepted. You will have to complete every question to receive the full 25 points. For most questions one sentence is sufficient, but for questions 15-20 more than one sentence will be needed to receive full credit. Please provide a screenshot of where in the financial st atements you found each answer to receive full credit. Some of these questions do not have a right or wrong answer, they are asking for what you have learned and therefore are subjective in nature.

Additional Context:

For additional context, I have provided a summary of what information you can find in the different sections of financial statements. Note this is a summary and does not include all of the rules as stated by the SEC for the applicable sections.

Part I

.    Item 1.Business

o This section typically goes into depth on the business and what product/service they offer. If a company breaks up their organization into different revenue streams (segments) they will disclose this here. The Company will also include information about their workforce, customers, customer success, competition,   sales and marketing strategies, research and development (if applicable), and other required disclosures.

.    Item 1A. Risk Factors

o This section is typically owned by the legal team and outlines a comprehensive   list of risks that the company faces or could face. This is typically a very lengthy portion of the document.

.    Item 1B.Unresolved Staff Comments

o The SEC does periodic reviews of Company’s financial statements to ensure they are properly following US GAAP rules. If they have questions, they will send the company “comment letters”. If at the point of filing the financial statements there are still unresolved comments with the SEC the Company would disclose them here.

.    Item 2. Properties

o This section includes a summary of the property that the company leases or owns. This would include offices and warehouses around the globe if applicable.

.    Item 3. Legal Proceedings

o Companies will from time to time be subject to legal proceedings and claims that arise in the ordinary course of business. These items would be disclosed here.

.    Item 4.Mine Safety Disclosures

o If the company operates in mines there is additional disclosure requirement here. This is not applicable for most companies.

Part II

.    Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

o This section includes information about the Company’s stock.

.    Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

o This section includes a more detailed dive into how the company is operating and what they are focusing on in the future. It typically has a section on items they want to highlight, results of operations (deeper dive into the items on the income statement), details on liquidity, details about cash flows, and other disclosures.

.    Item 7A. Quantitative and Qualitative Disclosures About Market Risk

o This section typically discloses any foreign currency or interest rate risk among other things.

.    Item 8. Financial Statements and Supplementary Data

o This section will include the auditor’s report, balance sheet, statement of operations (income statement), statement of comprehensive income (loss) (note this is a statement we haven’t discussed), statement of equity, statement of cash flows, and the footnotes.

.    Item 9.Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

o If applicable the Company will add a disclosure here but it is not common.