Annual Report Analysis Your annual report analysis is due at the end of Week 6. Obtain an annual report from a corporation that is interesting to you. Using techniques thatyou have learned ofin the...

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Annual Report Analysis

Your annual report analysis is due at the end of Week 6. Obtain an annual report from a corporation that is interesting to you. Using techniques thatyou have learned ofin the previous weeks, respond to the following questions:

  1. Who are the firm’s auditors? Do they provide a clean opinion on the financial statements?
  2. Have there been any subsequent events, errors and irregularities, illegal acts, or related-party transactions that have a material effect on the financial statements?
  3. Describe the trend in total assets and total liabilities for the years presented.
  4. What are the company’s three largest assets for the most recent year presented?
  5. What are the company’s three largest liabilities for the most recent year presented?
  6. What types of stock does the company have? How many outstanding shares are there for each type of stock for the most recent year presented?
  7. Does the company use the single-step income statement, multiple-step income statement, or a variation of both?
  8. Does the income statement contain any separately reported items, including discontinued operations or extraordinary items, in any year presented? If it does, describe the event that caused the item. (Hint: There should be a related footnote.)
  9. Describe the trend in net income over the years presented.
  10. Does the company have other comprehensive income? If yes, what is the nature of the transaction(s)?
  11. Does the company use the indirect or direct method of the cash flow statement?
  12. What is the trend in cash from operations for the years presented?
  13. What are thetwo largest items included in cash from investing activities?
Answered Same DayDec 20, 2021

Solution

Robert answered on Dec 20 2021
3 Votes
Introduction
Staples Inc. is one of the largest office supply chain store with a network of around 2,000 stores
around the globe. Stores of Staples Inc. are located in 26 countries and the headquarters are
located in United States. It is engaged in selling supplies, office machines, promotional products,
and furniture, technology and business services. The goods are available in stores and online
shopping can also be done. The analysis is done for the financial year ended on January 28,
2012.
1. Who are the firm’s auditors? Do they provide a clean opinion on the financial
statements?
The auditors of Staples Inc. are Ernst & Young LLP. The auditors provided unqualified
opinion on the financial statements of staples Inc.
2. Have there been any subsequent events, e
ors and i
egularities, illegal acts, or related-
party transactions that have a material effect on the financial statements?
As per the auditor’s opinion, Staples Inc., maintained in all material respects, effective
internal control over financial reporting. There was no subsequent event, e
ors and
i
egularities, illegal acts or related party transactions that could have a material effect on
the financial statements or on auditor’s opinion in audit report.
3. Describe the trend in total assets and total liabilities for the years presented.
From 2008 to 2011, the total assets showed upward trend i.e....
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