As a team, select an industry to analyze. Each team member should acquire the annual report or 10-K for one publicly traded company in the industry, with each member selecting a different company. (Library files, the SEC EDGAR service at H H w.secgoi . Compustat CD. or the company itself are good sources.) On an individual basis, each team member should then write a short report answering the following questions about the selected company. 1. Review the liabilities for your company. What strategy has the company followed with respect to borrowed funds? 2. Compare the individual liability accounts over several years. How have they changed? 3. Does the company have any contingent liabilities? If so. evaluate the risk associated with the contingency. 4. Compare the company's liabilities to its assets, income, and cash flows. Do you have any concerns?

Discuss any patterns across the companies that you as a team observe. Then, as a team, write a short report comparing and contrasting your companies using these attributes. Provide potential explanations for any differences discovered.