Exercise 24-2 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 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 2. Introduction of a new product line 3. Loss of assembly plant due to fire. 4. Sale of a significant portion of the company's assets. 5. Retirement of the company president. 6 Prolonged employee strike. 7. Loss of a significant customer 8. 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