The discussion question for Chapter 02 Using the Fortune 500 company that selected in Chapter 1, download a copy of their Financial Statements (also called Annual Report). You can google your company and "annual report" or go to the company's website, look on the bottom of the homepage for Investor Relations. Click on that link and you should be able to find a copy there. If you have trouble let me know. Find the Financial Statements in the Annual Report. They usually begin with the Report of Independent Registered Public Accounting Firm (search that in your pdf to find the page), the pages that follow will include the Income Statement, Balance Sheet, Statement of Shareholders' Equity and Statement of Cash Flows. Your company may call these reports something different. Just as an example, for Walmart's 2021 Financial Statements, the Independent Public Accountants Report starts on Page 53, so you may have to search a bit. Walmart calls their Income Statement, "Consolidated Statements of Income".Make sure that you note if the amounts are stated in millions or thousands. Many companies will do that to conserve space.

Using the Financial Statements (specifically the Balance Sheet), answer the following questions:

1. How much cash do they have on hand?

2. How much do they have in current assets? Remember, assets are things that we own. What are the major sources of current assets?

3.How much do they have in current liabilities? Remember, liabilities are amounts that we owe. What are the major sources of current liabilities?

4. Looking at the cash and current assets vs the current liabilities, is the company financial sound? Do they have enough cash on hand plus cash coming in (receivables) plus their other current assets to cover paying all their current debts?

5. Looking only at their liquidity (liquidity is their ability to pay their current liabilities), would you say this company is financially sound? Would you invest in it?