Let’s Look at an Annual Report

by Laura King and Ellen Sweatt

1. Find the Letter to Shareholders at the beginning of the annual report. What is the gist of this letter?
2. In Management’s Discussion & Analysis (MD&A Report), what are the main categories?
3. How many financial statements do you see? Name them.
4. Are your financial statements “consolidated”? What do you think that means?
5. What is the year end of your company? Why do you think?
6. What types of accounts are on the Income Statement or Statement of Earnings? How much is net income or earnings?
7. Do you finds Net Earnings per Share (EPS) anywhere? How much is it?
8. What does the Statement of Shareholder’s Equity (SHE) tell you?
9. What account and amount do you find on the Statement of SHE that is the same as on the Statement of Earnings?
10. What is the first asset on the Balance Sheet? The last?
11. What are the categories of liabilities?
12. How is Common Stock described?
13. What amount do you find on the Balance Sheet that is the same as on the Statement of Shareholder’s Equity?
14. What are the three main categories on the Statement of Cash Flows?
15. Does the bottom of the Statement of Cash Flows look familiar? Where did you see these amounts?
16. What is the first “note” to the financial statements?
17. Who signed the Report of Independent Public Accountants? What does it say?