Exercise 24-02 For each of the following subsequent (post-balance-sheet) events, indicate whether a company should adjust the financial statements, disclose in notes to the financial statements, or neither adjust nor disclose. Subsequent (Post-Balance Sheet) Events Settlement of federal tax case at a cost considerably in excess of the amount expected at year-end. 1. Introduction of a new product line. Loss of assembly plant due to fire. Sale of a significant portion of the company's assets. Retirement of the company president. Prolonged employee strike. Loss of a significant customer. Issuance of a significant number of shares of common stock. 9. Material loss on a year-end receivable because of a customer's bankruptcy. 10. Hiring of a new president. 11. Settlement of prior year's litigation against the company (no loss was accrued). 12. Merger with another company of comparable size