EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system, performs automated collection, validation, indexing, acceptance, and forwarding of submissions by companies and others who are required by law to file forms with the U.S. Securities and Exchange Commission (SEC). All publicly traded domestic companies use EDGAR to make the majority of their filings. (Filings by foreign companies are not required to be filed on EDGAR, but some of these companies do so voluntarily.) Form 10-K, which includes the annual report, is required to be filed on EDGAR. The SEC makes this information available on the Internet.
1. Access EDGAR on the Internet. The web address is www.sec.gov.
2. Search for a public company with which you are familiar. Access its most recent 10-K filing. Search or scroll to find the statement of cash flows and related note(s).
3. Is the direct or indirect method used to report operating activities? What is the largest adjustment to net income in reconciling net income and cash flows from operations in the most recent year?
4. What are the cash payments for interest and for taxes?
5. What has been the most significant investing activity for the company in the most recent three years?
6. What has been the most significant financing activity for the company in requirements 2–6 for another company?