Consider a publicly held company whose products you are familiar with. Some examples might include: Access the

Question:

Consider a publicly held company whose products you are familiar with. Some examples might include:

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Access the company’s public website and search for its most recent annual report. (Some companies provide access to their financial data through an “investor relations” link, while others provide a direct link to their “annual reports.”) After locating your company’s most recent annual report, open the file and review its contents.
After reviewing the annual report for your selected company, prepare answers to the following questions:
1. Review the company’s commitments and contingent liabilities footnote. Describe the company’s existing commitments. Is the company involved in any litigation? If so, what kind?
2. Does the company have any pension or retirement plans for its employees? If so, are they defined benefit plans or defined contribution plans? Are the plans underfunded or overfunded? If so, by what amount?
3. Does the company use derivatives to hedge its business risks? If so, what kinds of derivatives does it use and what kinds of business risks are being hedged?
4. Does the company have any deferred income taxes on its balance sheet? If so, are the deferred income taxes an asset or a liability? Is the amount of the deferred income tax asset or liability increasing or decreasing? What might explain this increase or decrease?