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A FINANCIAL STATEMENT ANALYSIS PROJECT FOR …

Global Perspectives on Accounting EducationVolume 6, 2009, 83-96A FINANCIAL STATEMENT ANALYSISPROJECT FOR INTRODUCTORYFINANCIAL ACCOUNTINGM arilyn B. MischBusiness Administration DivisionPepperdine UniversityMalibu, CaliforniaUSAC arolyn A. GalantineBusiness Administration DivisionPepperdine UniversityMalibu, CaliforniaUSAABSTRACTThis paper describes a FINANCIAL STATEMENT ANALYSIS PROJECT useful in both preparer-based and user-based introductory courses in FINANCIAL accounting. The projectrequires students to analyze trends in corporate performance, to evaluate corporatefinancial decisions, to discuss non- FINANCIAL STATEMENT issues that would be importantto potential investors, to compare two companies within an industry, and to makeinvestment recommendations.

A Financial Statement Analysis Project for Introductory Financial Accounting 85 PROJECT OVERVIEW Project Requirements As may be seen in the assignment sheet included in Appendix 1, the project requires students to obtain annual reports for two companies in a given industry-one to serve as the “base company”

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