Purpose: Use a company's annual report to identify the inventory method used and analyze the effects on the income statement and balance sheet.

Address: http://www.cisco.com Steps:

1. From Cisco System's homepage, use the quick search, type annual report.

2. Choose Search.

3. Choose Cisco System Annual Report.

4. Choose Financial Review.

5. Use the financial statements and relating notes to the financial statements to answer the questions below.

\section*{Instructions}

Answer the following questions:

(a) At Cisco's fiscal year end, what was the net inventory on the balance sheet?

(b) How has this changed from the previous fiscal year end?

(c) How much of the inventory was finished goods?

(d) What inventory method do they use?