Refer to Reebok’s financial statements in Appendix E. Review the balance sheet to determine how and where current liabilities were reported.

Required

a. Read Note 6. Identify and discuss any unusual terms. Trace any numerical disclosures of current liabilities in the notes to corresponding disclosures in the financial statements.

b. Determine whether Reebok has any unusual current liabilities. If so, discuss how financial analysts might interpret them. Discuss how Reebok’s managers might view such liabilities.

c. Discuss how accounts payable are related to accrued expenses. In your opinion, should they be disclosed together? Why?

d. Discuss how income taxes payable are related to notes payable. In your opinion, should they be disclosed separately? Why?

e. Discuss any other unusual concerns regarding Reebok’s current liabilities.

What other related information might an external analyst prefer?