Assignment #2: Encore Wire Form 10-K
1. What is the companys business strategy?
Encore Wires business strategy is to grow their part of the building wire market by
focusing on high level of customer services; adding new products al
1. The first step in a financial statement analysis is to calculate ratios.
2. Before beginning the analysis of a firms financial statements, it is necessary to
specify the objectives of the analysis.
3. A creditor is ultimately conce
1. It is possible for a company to post a healthy net income but still not have the
cash needed to pay its employees, suppliers, and creditors.
2. The statement of cash flows shows the changes in the income statement
1. The terms income, earnings, and profit are used interchangeably.
2. Earnings reported on the income statement is the same as cash generated during
the accounting period.
3. A multiple-step income statement presents several intermed
1. The balance sheet shows the financial position of a company n a particular date.
2. Consolidated statements are the combined financial statements of separate legal
entities when the parent controls 100% of the subsidiary.
3. A comm
Test Questions and Solutions
1. A basic understanding of financial statements is needed due to ongoing financial
turmoil and major corporate failures. T p.2
2. The SEC requires all companies, both public and private, to file annually