Locate the Cisco annual report. Do this by searching for “Cisco Systems,” clicking Investor Relations under About Cisco, and opening Annual Reports under the Financial Reporting tab. Then click Open Printable Report in the box for the most recent annual report. Answer the following questions concerning Cisco:
1. Select Letter to Shareholders from the menu. Is the message optimistic?
2. Select Business – General from the menu. When was the company founded? What is its focus?
3. Now find Cisco’s balance sheet under Part II – Financial Statements. What are Cisco’s Total Assets, Total Liabilities, and Total Shareholders’ Equity?
4. How much are Cisco’s inventories? Have they increased or decreased in the last year? Do you think that change is good or bad?
5. Select the Report of Independent Registered Public Accounting Firm, which is also under the Financial Statements tab. Who is responsible for the preparation, integrity, and fair presentation of Cisco’s financial statements? What is the auditor’s responsibility?
6. Find Cisco’s list of members of its board of directors near the end of the report. H1ow many directors are there? How many are Cisco executives? How many are academics? How many directors are on the audit committee?