What type of audit opinion did the external auditors give?

Topic: Financial Reporting

Step ONE: Analysis of Annual Report

Select a business from the provided list and analyze their latest annual report (either on the company website under investor relations or on finance.yahoo.com).

Company Stock Symbol

Amazon AMZN

Apple AAPL

Bank of America BAC

Best Buy BBY

Citigroup C

Continental Airlines CAL

Chipotle CMG

Costco

Wholesale COST

Chevron CVX

Dell DELL

eBay EBAY

Edison

International EIX

FedEx FDX

General Electric GE

Google GOOGL

Harley Davidson HOG

Hershey HSY

Intel INTC

Jet Blue JBLU

Johnson & Johnson JNJ

KB Homes KBH

Kraft Foods KFT

Microsoft MSFT

Pepsi PEP

Proctor and Gamble PG

Rubio’s RUBO

Starbucks SBUX

Verizon

Communications VZ

Wal-Mart WMT

Exxon Mobil XOM

Taco Bell, YUM YUM

Complete the following steps for the selected company’s Annual Report. You can use information from the footnotes to answer these questions but make sure to reference from where the information came. Must be one page double spaced.

Look at the balance sheet for the last two years. What caused the changes in the balance sheet from last year to this year? Use account names and numbers for both years to explain your answer.

Look at the Income Statement (sometimes called Statements of Operations) for the last two years. What caused the changes in the Income Statement from last year to this year? Use account names and numbers for both years to explain your answer.

What type of audit opinion did the external auditors give? What accounting standards did they use? Where are each of these components found?

Include the Annual report used with your submission as an attachment.

Step TWO: Create the Financial Statements

Use the step 2 attachment to do the following – create an income statement, statement of retained earnings, balance sheet, and statement of cash flows (note: use first four spreadsheet tabs for this step).

Financial Reporting Summative Problem.x

Step THREE: Reflection

USE the step 3 attachment for the following – Analyze the statements you have created and use them to answer the following questions

Is Wells Mobile Apps paying too much out in dividends? Why or why not? Explain your reasoning.

For Scenic Industries, there was an increase in cash from the first year to the next. What was the single biggest event that caused this? Explain your reasoning.