Exercise $24-2$ For each of the following subsequent $($post$-$balance$-$sheet$)$ events, indicate whether a company should $($a$)$ adjust the financial statements, $($b$)$ disclose in notes to the financial statements, or $($c$)$ neither adjust nor disclose. Sr$.$ No$.$ Subsequent $($Post$-$Balance$-$Sheet$)$ Events $1.$ Settlement of federal tax case at a cost considerably in excess of the amount expected at year$-$end. Adjust the Financial StatementsDisclose in Notes to the Financial StatementsNeither Adjust nor Disclose. $2.$ Introduction of a new product line. Adjust the Financial StatementsDisclose in Notes to the Financial StatementsNeither Adjust nor Disclose. $3.$ Loss of assembly plant due to fire. Adjust the Financial StatementsDisclose in Notes to the Financial StatementsNeither Adjust nor Disclose. $4.$ Sale of a significant portion of the companys assets. Adjust the Financial StatementsDisclose in Notes to the Financial StatementsNeither Adjust nor Disclose. $5.$ Retirement of the company president. Adjust the Financial StatementsDisclose in Notes to the Financial StatementsNeither Adjust nor Disclose. $6.$ Prolonged employee strike. Adjust the Financial StatementsDisclose in Notes to the Financial StatementsNeither Adjust nor Disclose. $7.$ Loss of a significant customer. Adjust the Financial StatementsDisclose in Notes to the Financial StatementsNeither Adjust nor Disclose. $8.$ Issuance of a significant number of shares of common stock. Adjust the Financial StatementsDisclose in Notes to the Financial StatementsNeither Adjust nor Disclose. $9.$ Material loss on a year$-$end receivable because of a customers bankruptcy. Adjust the Financial StatementsDisclose in Notes to the Financial StatementsNeither Adjust nor Disclose. $10.$ Hiring of a new president. Adjust the Financial StatementsDisclose in Notes to the Financial StatementsNeither Adjust nor Disclose. $11.$ Settlement of prior years litigation against the company $($no loss was accrued$).$ Adjust the Financial StatementsDisclose in Notes to the Financial StatementsNeither Adjust nor Disclose. $12.$ Merger with another company of comparable size. Adjust the Financial StatementsDisclose in Notes to the Financial StatementsNeither Adjust nor Disclose. Warning