Reference no: EM132723804

Focus company-find various accounting policy disclosures In Exer- cise 1.1, you were asked to obtain the most recent annual report of a company that you were interested in reviewing throughout this term. Read the "significant accounting policies" and review other note disclosures as necessary to answer the following questions:

Question 1: What are the principal components included in the firm's receivables (or accounts and notes receivable, or trade receivables)?

Question 2: What inventory valuation method(s) is (are) being used for financial reporting purpos- es? How much more would ending inventory have been if it were reported on a total FIFO basis? (Hint: This disclosure is sometimes referred to as the "LIFO Reserve.")

Question 3: Does the firm report a reconciliation of the statutory income tax rate with the effective tax rate? If so, what are these rates, and what principal temporary dif- ferences caused them to differ?

Question 4: Have any significant subsequent events occurred since the balance sheet date? If so, describe the effects that these items will have on future financial statements.

Question 5: What are the principal components included in the firm's cash (or cash and equivalents, or cash and short-term investments)?

Question 6: What depreciation method(s) is (are) being used for financial reporting purposes? How much total depreciation and amortization expense did the firm report?

Question 7: Does the firm have any stock options outstanding? If so, how many option shares are exercisable at the end of the year?

Question 8: Does the firm have any significant contingencies or commitments that have not been reported as liabilities on the balance sheet? If so, describe the potential effects of these items from the perspective of a common stockholder.