Financial Leverage ( Based on CVS health 2021) Did management discuss any changes in their debt or equity structure that would have affected their financial leverage? Was new debt incurred? Did they issue or repurchase and shares of stock? Explain. Revenue Recognition - Read the companys disclosure on its revenue recognition policies. When and how does the company recognize revenue? Does it use different methods for different products and services? Accounts receivable Does the company have accounts receivables? Using your common size balance sheet, what is the relative size of the accounts receivable? Has it changed over the recent two year period? Read the disclosure notes on the accounts receivable and credit risk. Do either of the companies have any factors that increase the credit risk? Using your calculation of the accounts receivable turnover and days outstanding, was there a significant change? Given the economic environment and competitive landscape, it this change expected? How do the companies compare? R&D Activities Did the company engage in any R&D activities? If so, what was the trend? Is the common size amount changing? You may need to read the MD&A or Notes to find this information. Restructuring Activities Has the company restructured in the past two years? If so, how much was the restructuring expense? Why did they restructure? Again, you may need to read the MD&A or Notes to find this information. Discontinued Operations Did the company report a gain or loss from discontinued operations? If so, read the MD&A and the disclosures notes to explain what component of the business was either sold or is being held for sale. Inventories and Cost of Goods Sold What is the inventory for the company? Do they manufacture or buy and resell their inventory? What inventory costing method(s) does the company use? Consider the current economic environment and the companies competitive landscape. Can you explain any changes in gross profit levels? Read the MD&A to determine senior managements take and use your ratio calculations. Does the company have any inventory related risk? What has been done to mitigate the risk? (MD&A may address this issue).