1. Describe cost flow assumption(s) used by the company. You should be able to find this information in the accounting policies note to the financial statements. 

2. Property, Plant, and Equipment: Identify the method or methods of depreciation used by the company. You should be able to locate this information in the accounting policies note to the financial statements. 

3. List the long-term asset and the current asset totals for the 2 years presented in the company's annual report. Does the company have more long-term assets than current assets? (Note -- for our purposes, anything not a current asset is a long-term asset.) Is it growing in terms of increases in long-term assets? 

4. If there have been major purchases, has the company financed them through debt, equity, or internally? 

5. Which of the following is the company's largest asset category: accounts receivable, inventory, or land? What is the amount of that asset category? 

6. If the company has any intangible assets, what kind are they? 

7. Did the company report any contingent liabilities ("contingencies")? If so, briefly explain.

Answer rating: 100% (QA)

1 Average cost flow assumption is a calculation companies use to assign costs to inventory goods cost of goods sold COGS and ending inventory An average is taken of all of the goods sold from inventor... View the full answer