(Post-Balance-Sheet Events) For each of the following subsequent (post-balance-sheet) events, indicate whether a company should

(a) adjust the financial statements,

(b) disclose in notes to the finan-

_ cial statements, or

(c) neither adjust nor disclose.

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1. Settlement of federal tax case at a cost considerably in excess of the amount expected at year-end. 2. Introduction of a new product line. 3. Loss of assembly plant due to fire. 4. Sale of a significant portion of the company's assets. 5. Retirement of the company president. 6. Prolonged employee strike. 7. Loss of a significant customer. 8. Issuance of a significant number of shares of common stock. 9. Material loss on a year-end receivable because of a customer's bankruptcy. 10. Hiring of a new president. 11. Settlement of prior year's litigation against the company. 12. Merger with another company of comparable size.