The following events took place for Nanders Ltd. after the company's September 30 fiscal year-end, but before the financial statements were released to the public. For each event, indicate whether Nanders should adjust the financial statements, disclose the event only in the notes to the financial statements, or neither adjust nor disclose.

(a)

One of Nanders' suppliers declared bankruptcy. The supplier provides 8% of the materials used by Nanders, and is one of seven suppliers used by the company.

(b)

Many of Nanders' customers are in the United States and are charged in $US. On November 1, the foreign currency exchange rate was 25% lower than it had been on September 30. The new rate is expected to be in effect for the foreseeable future.

(c)

On October 15, the company discovered that its year-end inventory count did not include $40,000 of its inventory that was being held on consignment at another location.

(d)

On October 30, a major stock market correction occurred, significantly lowering the value of Nanders' investment portfolio.

(e)

On November 5, a lawsuit was settled requiring Nanders to pay $100,000 in damages. The lawsuit had originally been filed in the previous fiscal year, however Nanders had not accrued any amount as the company was uncertain about the outcome.