Choose a publicly traded company that you are familiar with. Go to the selected company’s website...

Question

Choose a publicly traded company that you are familiar with. Go to the selected company’s website and look at their annual report (10k). If you prefer, you may also go to the Securities Exchange Commission’s EDGAR database and download the annual report. Review the annual report, paying particular attention to the financial statements and the notes to the financial statements. How are their financial statements similar and different from those presented in the text? Describe the differences, if any, and explain why you believe the differences exist. As a potential investor, what areas do you think you should be most concerned with, if any, based upon the notes? Assuming you had unlimited funds, would this be a company you would invest in? Why or why not?

Sumit · Accepted Answer

Financial Statements are used by the stakeholders of the company to determine the financial performance of the company as well as the financial health of the company based on which the future decisions of the stakeholders of the company are based. As given in our text, there are four main financial statements:
1. Income Statement
2. Balance Sheet
3. Statement of Owners Equity
4. Statement of Cash Flows
For this assignment, I have used the 10-K 2020 issued by the Amazon. The differences that I have noted between the text and financial statements issued by Amazon are as:
(a). In our text the amounts in the financial statements are presented in thousands whereas in the 10-K issued by Amazon, the amounts in the financial statements are presented in Millions. 
(b). In our text the financial statements do not include the amounts relating to the previous year for comparison, whereas in the 10-K issued by Amazon,

Choose a publicly traded company that you are familiar with. Go to the selected company’s website and look at their annual report (10k). If you prefer, you may also go to the Securities Exchange...

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