In your web browser, search for the investor relations page of a public company you are interested in (e.g., Papa John’s investor relations). Select SEC Filings or Annual Report or Financials to obtain the 10-K for the most recent year available.*

Required:
Answer the following questions based on the annual report (10-K) that you have downloaded:
1. If your company lists inventories in its balance sheet, what percentage of total assets does inventories represent for each of the last three years? If your company does not list inventories, discuss why this is so.
2. If your company lists inventories, what inventory costing method is applied to U.S. inventories?
a. What do you think motivated this choice?
b. If the company uses LIFO, how much higher or lower would net income before taxes be if it had used FIFO or a similar method instead?
3. Ratio Analysis:
a. What does the inventory turnover ratio measure in general?
b. If your company reports inventories, compute the ratio for the last three years.
c. What do your results suggest about the company?
d. If available, find the industry ratio for the most recent year, compare it to your results, and discuss why you believe your company differs or is similar to the industry ratio.
4. What is the effect of the change in inventories on cash flows from operating activities for the most recent year (i.e., did the change increase or decrease operating cash flows)? Explain your answer.