In teams, select a public company that interests you. Obtain the company's most recent annual report on Form 10-K. The Form 10-K is a company's annually required filing with the Securities and Exchange Commission (SEC). It includes the company's financial statements and accom¬panying notes. The Form 10-K can be obtained either (A) from the investor relations section of the company's Web site or (B) by using the company search feature of the SEC's EDGAR database service found at www.sec.gov/edgar/searchedgar/companysearch.html.
1. Based on the information in the company's most recent annual report, answer the following questions:
A. How much cash does the company have at the end of the most recent year?
B. What percentage of total current assets is cash during the most recent two years presented? Has this percentage increased, decreased, or remained the same during this period?
2. Review Management's Annual Report on Internal Control Over Financial Reporting. Based on this information, answer the following questions:
A. Who has responsibility for establishing and maintaining adequate internal controls over a company's financial reporting?
B. How is "internal control over financial reporting" defined in this report?
C. What level of assurance is provided that fraud will be detected?