Obtain the annual reports (or annual report data) of five well-known companies. You can get the reports either from your college library or by mailing a request directly to the company (allow two weeks for delivery). Or you can visit the Web site for this book (http://www.prenhall.com/harrison/) or the SEC EDGAR database, which includes the finan- cial reports of most well-known companies. 1. After selecting five companies, examine their income statements to search for the follow- ing items:

a. Income from continuing operations

b. Discontinued operations

c. Extraordinary gains and losses

d. Cumulative effects of accounting changes

e. Net income or net loss

f. Earnings-per-share data 2. Study the companies' balance sheets to see

a. What classes of stock each company has issued.

b. Which item carries a larger balance-the Common Stock account, or Paid-in Capital in Excess of Par (also labeled Additional Paid-in Capital)?

c. What percentage of each company's total stockholders' equity is made up of retained earnings?

d. Whether the company has treasury stock. If so, how many shares and how much is the cost? 3. Examine each company's statement of stockholders' equity for evidence of

a. Cash dividends

b. Stock dividends (Some companies use the term stock split to refer to a large stock divi- dend.)

c. Treasury stock purchases and sales 4. As directed by your instructor, either write a report or present your findings to your class. You may be unable to understand everything you find, but neither can the Wall Street analysts! You will be amazed at how much you have learned.