Based on an evaluation of accounting policies and accounting method choices conducted in earlier sections on areas such as: revenue recognition; accounting for allowance for uncollectibles; depreciation method choices and estimates; lease accounting; off balance sheet financing develop an overall evaluation of earnings quality for the firm. Is the company’s accounting posture, conservative, neutral, or aggressive? Briefly discuss.

2. Based on an examination of the income statement, comment on the segregation of core vs. non core activities and any nonrecurring items such as discontinued operations, extraordinary items or effect of accounting changes. How do impact earnings persistence?