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Financial Statement Review for an American Corporation

Select an American corporation.
Visit its website and download the Income Statement, Statement of Stockholders Equity, Balance Sheet, and Statement of Cash Flows.
Complete: Financial Statement Review Worksheet.
Submit the completed worksheet, copies of the downloaded financial statements, and a link to the website.

Financial Statement Review

What is the net income for the current fiscal year? Is it up or down from the prior year? Why would this information be important to investors?

What is the ending balance in stockholders' equity? Why would a labor union potentially be interested in this information?

What is the total value of assets? Why would this information be important to a potential creditor?

What is the total cash flow from operation?

What financial statement user would find this information most important?

Solution Preview

We will use a company as an example, and you can then use the sample to do the same, with the company of your choosing. For the example, let's use Apple Corporation. Their financial statements are easily read and nicely prepared, so they're an ideal choice. You can find their financial statements here: http://investor.apple.com/sec.cfm#filings

Select annual filings, and then select the top choice, which is the 10-31-2012 annual report. We always want to work with an annual report for financial statement analysis, and not a quarterly report.

Now let's take a look at the questions presented.

What is the net income for the current fiscal year? Is it up or down from the prior year? Why would this information be important to investors?

-- We find this on the "consolidated ...

Solution Summary

This solution discusses each of the financial statement review questions presented.

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