Refer to CVS Corporation’s annual report in the Supplement to Chapter 1 to answer the following questions:

1. Does CVS have discontinued operations or extraordinary items? Are there any items that would lead you to question the quality of CVS’s earnings?

Would you say the income statement for CVS is relatively simple or relatively complex? Why?

2. What transactions most often affect the stockholders’ equity section of the CVS balance sheet? (Hint: Examine the statements of stockholders’ equity.)

Comparison Case: CVS Versus Southwest Book Value and Market Value