Please go to the following web site and choose a company’s latest yearly
financial statements1 (2003, 12 months, historical cost, series XI,
no.1). Download the financial statements and answer the following
1. Give a brief explanation about the company and the activities of the
2. State the owners and their shares in the company.
3. Explain the accounting policies chosen by the company.
4. Which auditing company audited the financial reports of the company?
What was the opinion of the auditors about the company’s financial
5. Go to the short-term marketable securities section and state which
securities are involved in this section and how they are valued. What
kind of adjustments are made regarding the short-term marketable
6. Go to the receivables section of the balance sheet and
a. guess the adjustments done to the notes receivables at the end
of the period and show them by journalizing.
b. see if they left a provision for uncollectible accounts. If
there had not been a provision for uncollectibles, would the
financial statements show the financial position of the company
in a true and fair manner? (Hint: State the effects on the net
profit, on the valuation of the receivables, etc.)
7. Go to the inventory section and explain which inventory valuation
method is used. If other inventory valuation methods were used, how
would the financial statements be affected?
8. Go to the fixed assets section and state what the company has as
tangible fixed assets. Which depreciation method is used and if other
depreciation methods were used, how would they affect the financial
9. Go to the short-term liabilites section of the balance sheet and guess
the adjustments made on the notes payable. Briefly discuss the effects
of these adjustments on the financial position of the company.
10. Go to the long-term liabilities section of the balance sheet and see
the bonds payable and bank loans sections. Explain the year end
adjustments on these accounts.
11. Go to the shareholders’ equity section and explain the accounts in
this section. By taking into consideration of the suggestion of the
distribution of the current year profit, make the necessary accounting
records about the profit distribution.
12. Go to the income statements and explain the general and administrative
expenses, extraordinary expenses and extraordinary income sections.
Which accounts can be classified under these sections and why? Also
show the calculation of the cost of goods sold section.
13. By looking at the financial statements, would you buy the shares of
this company? Explain briefly.
P.S. You should refer the disclosures of the financial statements as well
as the financial statements. Also do not forget to attach the company
information and financial statements with your homework.
1 The company should be from the real sector. In other words it should
not be banks, insurance companies, and other financial companies.