Question

The following excerpt is from Fortress International Group’s 2012 10-K report filed with the SEC and is a required disclosure: We earned approximately 46% of our total revenue from two customers for the year ended December 31, 2012, and 43% from three customers for the year ended December 31, 2011.

Required:
1. Why does the SEC require companies like Fortress International to alert financial statement readers to the existence of major customers?
2. How might this information be of use to a financial analyst?
3. Why might these two substantial customers want to monitor the financial performance and health of Fortress? What specific information about Fortress would be of most interest to the customers?
4. Why might Fortress want to monitor the financial performance and health of these two customers? What information about the customers would be of most interest to Fortress?



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  • CreatedSeptember 10, 2014
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