Segment Reporting The manager you work for has asked you to perform some researc...

Segment Reporting

The manager you work for has asked you to perform some research to determine what types of information public companies are providing on their Internet home pages. The public company you work for is considering establishing its own home page. In particular, the manager wants you to note how these companies describe their products and services on their home pages. After researching the home pages, the manager wants you to review each company’s Form 10-K by using the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) database. While looking at the Form 10-Ks, the manager wants you to observe how the companies describe the segments of their business. For example, are the segments as described in the Form 10-K similar to the products and services mentioned on the same company’s home page?

Required

a. Using an Internet search engine, find the home page of a public company. ( Hint: A helpful search term is “Company Home Pages.”) Then write a brief summary about what you find on the company’s home page discussing the following:

(1) What type of information related to the company’s products or services is provided?

(2) What other information is presented on the home page?

b. Using the EDGAR database, locate the most recent Form 10-K for the company you selected.

( Note: The EDGAR database collects and maintains the forms that are required to be filed by public companies to the U.S. Securities and Exchange Commission [SEC]. Hint: The Internet

URL for the EDGAR database is http://www.sec.gov/ )

(1) Review the Form 10-K and locate the segment disclosure information. Print off this segment information.

(2) Write a brief report summarizing what you find in the company’s Form 10-K regarding segment disclosures. Include the following information:

(a) Describe the company’s segments as displayed in the Form 10-K. Discuss the basis on which the segments are presented.

(b) Discuss which segment(s) has (have) the highest revenues, is (are) the most profitable, and has (have) the most assets.