ACCT 201

Understanding Annual Report

Instructions: Using the 2015 Bristol-Myers Squibbs Annual Report, answer the following questions related to Bristol-Myers Squibb.

Where is the corporate headquarters of Bristol-Myers Squibb (Hint: where can get Annual Report or 10-K)

When is the fiscal year end of Bristol-Myers Squibb?

What is the Bristol-Myers Squibbs principle line of business?

Who (i.e., specific companies) are Bristol-Myers Squibbs major competitors? (not in Annual Report; must use other source).

What is the stock ticker symbol used to identify Bristol-Myers Squibb on the stock exchange?

What U.S. stock market exchange is Bristol-Myers Squibb traded?

7. The Securities and Exchange Commission (SEC) requires an annual financial statement audit for all companies, whose capital stock is publicly traded (i.e., traded on a stock exchange). The purpose of the audit report is to communicate the findings of the auditor to financial statement users.

Who is Bristol-Myers Squibbs 2015 auditor?

What is the responsibility of the auditor with regard to the financial statements? (hint: read the report signed by the auditors)

Does the auditor believe that the financial statements of Bristol-Myers Squibb were presented fairly? Write the sentence from the audit report that supports your answer.

8. Briefly describe the requirement by management with respect to internal controls, which is referred to in a report signed by management in the annual report.

9. What method of depreciation is used by the company to depreciate its property, plant, and equipment?

10. What inventory valuation method is used to determine the cost of the companys inventory?

11. What is the largest source of cash (cash inflow) from financing activities in fiscal year 2015? (hint: one item, which is listed on the Statement of Cash Flows)

12. What is the largest use of cash (cash outflow) from investing activities in fiscal year 2015? (hint: one item, which is listed on the Statement of Cash Flows)

13. Describe one footnote (i.e., notes to the financial statements) that presents additional details about a recorded dollar amount in the current fiscal years financial statements (include the footnote number or letter).