Refer to the MCI annual report in Appendix C and answer the following questions.

a. Briefly describe the operations of MCI and indicate whether the company is a man¬ ufacturer, retailer, or service enterprise.

b. Which public accounting firm audited the MCI financial statements? Briefly explain the contents of the audit report.

c. What dollar amount for net income was reported for 1994 and how does it compare to the amounts reported in 1993 and 1992?

d. How much long-term debt did MCI owe as of December 31, 1994, and how does this amount compare to the December 31, 1993 amount? Compute the net increase in “Senior notes and other debt” during 1994.

e. How much cash was provided by operating activities during 1994, 1993, and 1992?

f. Provide the name and position of the individuals who signed the MCI management letter and briefly describe what it says. g. Review the list of MCI’s Board of Directors. How many are MCI officers? Why aren’t all board members MCI officers?