Choose a publicly-traded company of your choice. Locate their most recent annual report either through their company website or through sec.gov (Links to an external site.) and the Edgar database (form 10-K). Review the balance sheet, income statement, and first two footnotes and answer the following questions:

1. Find two accounts between the balance sheet and income statement that are not familiar to you. What are the definitions of these accounts?

2. Has the company financed its assets primarily through debt or through equity? Which is the better approach?

3. Has net income increased or decreased from last year? What is the primary reason for this change?

4. Which inventory method is the company using?

5. Related to depreciation, what is the estimated useful life for company equipment?