Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac

Exercise 37

Team Activity
In teams, select a public company that interests you. Obtain the company's most recent annual report on Form 10-K. The Form 10-K is a company's annually required filing with the Securities and Exchange Commission (SEC). It includes the company's financial statements and accompanying notes. The Form 10-K can be obtained either (A) from the investor relations section of the company's Web site or (B) by using the company search feature of the SEC's EDGAR database service found at www.sec.gov/edgar/searchedgar/companysearch.html.
1. Based on the information in the company's most recent annual report, answer the following questions:
A. In what industry does the company operate?
B. How many years of information are reported on the company's income statement?
C. How much net income does the company report on its income statement for each year presented?
D. How much revenue does the company report on its income statement for each year presented?
E. Within the notes to the financial statements, find the note on significant accounting policies. Based on the information in this note, when does the company recognize revenue?
2. Based solely on the company's net income, has the company's performance improved, remained constant, or deteriorated over the periods presented? Briefly explain your answer.