• Describe the content and purpose of the three main financial statements.

Balance Sheet

• What are the balances at year-end for assets, liabilities, and stockholder’s equity?
• Prepare a common-size Balance Sheet. Be sure to properly label and form this financial statement.
• Review the Notes to the financial statement:

• What Inventory Method does the company use?
• What other pertinent information does the company disclose about its inventory?
• What does the company disclose regarding fixed assets and depreciation?

Income Statement

• What is revenue, gross profit, and net income for the year?
• Prepare a common-size Income Statement. Be sure to properly label and form this financial statement.
• Are there any special items on the Income Statement (e.g. Discontinued Operations, Extraordinary items)? If so, describe the event that caused the item and why is this event classified as a special item.
• Review the Notes to the financial statement:

• Describe the company’s policy on revenue recognition.

Statement of Cash Flows

• What are the cash flow totals for operating, investing, and financing activities?
• What are some of the main investing and financing activities that occurred? If there are negative cash flow totals, describe whether this cash outflow has a positive or negative impact on the company’s sustainability. Why?

Management’s Discussion and Analysis (MD&A)

• Highlight 3 interesting topics discussed in the MD&A section of the annual report.

• How does the information presented impact the financial statements and relevant ratios?

• Revenues ($M)

  $548,743

  Profits ($M)

  $19,742

  Market Value ($M)

  $411,690

  Employees

  2,200,000

  Figures are for the latest twelve months ended Oct. 31, 2020. Market value as of Jan. 20, 2021. Sources: Bloomberg; S&P Global.

  Key Financials (Last Fiscal Year)

  $ millions

  % change

  Revenues ($M)

  $523,964

  1.9%

  Profits ($M)

  $14,881

  123.1%

  Assets ($M)

  $236,495

  -

  Total Stockholder Equity ($M)

  $74,669

  -

  Profit Ratios

  Profit as % of Revenues

  2.8%

  Profits as % of Assets

  6.3%

  Profits as % of Stockholder Equity

  19.9%

  Earnings Per Share (Last Fiscal Year)

  Earnings Per Share ($)

  5.19

  EPS % Change (from 2018)

  129.6%

  EPS % Change (5-year annual rate)

  0.5%

  EPS % Change (10-year annual rate)

  3.4%

  Total Return

  Total Return to Investors (2019)

  30.3%

  Total Return to Investors (5 years, annualized)

  9.4%

  Total Return to Investors (10 years, annualized)

  11%