1. Financial Highlights

1. What financial highlights does the Company highlight this year?

1. Explain how the Company portrays thehighlighted items -(iein a positive, mixed or negative way).

1. What items are not included in the financial highlights that you believe should have been included?

(Hint: Youmight want tocome back to this question after you have completedall ofthe questionsbelow).

1. Fiscal Year

1. The fiscal yearendin the Company extends from when to when?Where did you locate this information?

Fiscal year-end refers to the completion of a one-year, or 12-month, accounting period. Like in this case,if wetake a lookat the financialstatementswe can see that CVShas a fiscal year-end that is the same as the calendar year-end,which means thatthat the fiscal year ends on December 31.Companieshave the ability tochoose the best fiscal year-end for themselves, designed with the needs of the company in mind.

1. Explain why the Company has chosen thisparticular timeperiod for its fiscal year?

1. Balance Sheets

1. For which dates/years does the company report a balancesheet?2019 and 2018

1. Using totals for each category(total assets, liabilities and shareholders' equity), what is the balance sheet equation for the most recent year.

The balance sheet displays the company's total assets, and how these assets are financed, through either debt or equity. It can also be referred to as a statement of net worth, or a statement of financial position. The balance sheet is based on the fundamental equation:Assets = Liabilities + Equity.

So, in this case Total Assets = $222,449 millions, Total Liabilities = $158,279 millions, Totalshareholdersequity = $64,170 millions. Which means that $222,449=$158,279+$64,170.

1. What are the three largest assets as reported on the most recent balance sheet?

If wetake a lookat the balance sheet,Operating lease right-of-use assets with $20,860 million, Goodwill $79,749 million, and Intangible assets, net $33,121 million.

1. Do the amounts reported as assets appear consistent as to what you might expect for theCompany?

1. What is the amount of accumulated depreciation for the current year?Where would you obtain this information?

Accumulated depreciationfor the current year is $-16,890.The accumulated depreciation account is acontra asset accounton a company's balance sheet, meaning it has a credit balance. Itappears on the balance sheet as a reduction from the gross amount of fixed assets reported.In thisreport,Accumulated depreciation value is found under thepropertyand equipment table.

1. What are the three largest liabilities as reported on the most recent balance sheet?

The largest liabilities are: Pharmacy claims and discounts payable ($13,601), Long-term operating lease liabilities ($18,826), and Long-term debt ($64,699)

1. Which is larger -the Company's retained earningsamountor capitalstock/equity?

Capital stock/equity is larger.

1. Prepare common size financial statementsanalysis(horizontal and vertical analysis) for the Company as we demonstrated in classusing excel.(IeYou can download the comparative balance sheets to excel from thecompanywebsite and compare the balance sheet items as a percentage of total assets for each year and thechange in the itemsyear over yearas$amount and a percentageas we demonstrated in class).

1. What is the percentage of current assets to total assets for each year?

1. What is the percentage of current liabilities to total assets for each year?

1. What is the percentage of total debt to total assets for each year?(Note: This is the debt percentage)

1. Did the debt percentage increase or decrease from year to year?Whatdo you think thisindicatesabout the Company?

1. What is the percentage of stockholders' equity to total assets for each year?

1. Explain if Company's ratio of stockholders' equity to total assets seem consistent with the business risk of the Company?

1. Calculate the current ratio for each year.What does the ratio say about the Company?

1. What is the percentage change in total assets from the prior year to the current year- increase or (decrease)?

1. Does the Company's common stock have a par value?If yes, what is the amount reported as par value per share?

1. How many shares of common stock were issued at the end of the fiscal year?

1. Income Statements

1. For this AnnualReport,forwhich dates does the Company report it income statements?

1. What is the amount reported for net sales for each fiscal year?

1. Prepare common size financial statements analysis (horizontal and vertical analysis) for the Company as we demonstrated in class using excel.(IeYou can download the comparative income statements to excel from thecompanywebsiteand compare the income statementitems as a percentage of net sales for each year and the change in the itemsyear over yearas a$ amount and a percentageas we demonstrated in class).

1. What is the percentage change in net sales for each year?Describe any trends that you believe to be developing.

1. What are the categories of the income statement line items in order to calculate net income (ierevenue, expenseetc).

1. What is the amount of net income reported for each fiscal year?Which is changing more rapidly - net sales or net income?

1. What are the three largest expenses for each of the fiscal years presented?

1. If the Company sells products, what is the gross margin and gross profit percentage for each fiscal year presented?

1. What is the amount of operating income for each fiscal year? What is the amount of operating income as a percentage of sales for each fiscal year?What is the trend?

1. Statements of Cash Flows

1. Does the Company use the Indirect or Direct Method to prepare their Statement of Cash Flows?How can you tell the difference?

1. What is the amount of cash flows from operating activities, financing activities and investing activities for each fiscal yearpresented.What does this information tell us?

1. On what statement(s) would you expect to find information regarding the declaration and payment of dividends?Did the Company pay dividends for any of the fiscal years presented?

1. Describe the trend in the cash flow from financing activities.

1. Statementsof Stockholders' Equity

1. Using the amounts in the statement of changes in stockholders' equity, what is theamount toreconcile or roll-forward thebeginning retained earningsto theendingretainedearningsfor the most recent year.(Hint:Use the statement of stockholders' equityto roll the numbers from one ear to the next).

1. Notes to the Financial Statements

1. How many notes to the financial statementsaccompanythesefinancial statements?

1. The first or second footnotedisclosure typicallydescribes the significant accounting policies.Identify and briefly summarize 3 of these policies.

1. Report of IndependentPublic Accountants

1. Although this is not an auditing class, what accounting firm audited the financial statements?(Hint: Were you able to find the"Report ofIndependentRegisteredPublic Accounting Firm")

1. What is the audit firm's responsibility for auditing financial statements?

1. What type of audit opinion (audit report) did the audit firm issue on these financial statements for the periods presented?What does this mean?

1. The auditors should investigate the internal controls of the Company.What is described in a letter about internal controlsincluded with the financial statements?

1. Is there a separate opinion included in the financial statements about the Company's internal control?If not, where do the auditors include their conclusion on the Company's Internal Control over Financial Reporting.

1. Management's Discussion and Analysis (MD&A)

1. Provide a description of what is included in the Company's MD&A section.

1. Conclusion

1. What is your feedback about this assignment for this class?How do you feel about financial accounting now vs the beginning of the semester?What grade do you think you earned for this project?How long did it take you to complete?