Financial data

Part II of the 10-K includes information related to any matters that impact the company's financial health. In this part, you find the following items:

✓ Item 5 — Market for registrant's common equity, related shareholder matters, and issuer purchases of equity securities: In this section, you find information about the market for the company's stock, which stock exchange the company is traded on, the quarterly low and high stock prices for the past two years, the approximate number of shareholders, the amount paid in cash dividends for the past two years, and discussion of any restrictions on the company's ability to pay future dividends.

✓ Item 6 — Selected financial data: In this section, you find a five-year summary of selected financial data, including net sales, income or loss from continuing operations (company activities that go on each year to make and sell products or services) on a per-share basis, total assets, long-term debt, cash dividends per share of common stock, and information about any redeemable preferred stock (stock that can be converted to debt).

✓ Item 7 — Management's discussion and analysis of financial condition and results of operations: In this section, management discusses the company's financial condition and any changes to its condition that have occurred in the past year. Management also discusses the results of operations and analyzes the company's liquidity, resources, and operations. If any major changes in the financial statements took place during the year being reported, the company also discusses those changes in this section.

✓ Item 7A — Quantitative and qualitative disclosures about market risk:

This section is where you find management's discussion of external economic factors that impacted the company's operations, such as the effects of inflation. You also find discussion about the company's competition and any major risks to the industry as a whole.

✓ Item 8 — Financial statements and supplementary data: Here's where you find the balance sheet, income statement, and statement of cash flows, as well as all supplementary information for these documents, such as the notes to the financial statements (see Chapter 9) and the auditors' report (see Chapter 5).

✓ Item 9 — Changes in and disagreements with accountants on accounting and financial disclosure: If the company has any disagreements with the auditors about what information must be presented on the financial statements and how to present it, this section is where you find discussion of the differences.

✓ Item 9A — Controls and procedures: This section is where you find information about the company's internal controls and procedures to avoid fraud and ensure accuracy in the financial statements. I discuss these requirements in greater detail in the section "Investigating Internal Controls."

✓ Item 9B — Other Information: This includes any items that aren't reported on an 8-K during the year, as well as items that are reported on an 8-K but aren't reported elsewhere in the 10-K.

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