The questions for Weeks 2 - 4 are designed to help teach how to derive meaning from financial statements. Select a line item and use Variance Trend Analysis to make some initial assessments about how the company is performing.

1. Find and post a screen shot of a Balance Sheet from the investor relations section of the website from the latest fiscal year for one of the following companies:

FedEx

Target

1. Pick a Balance Sheet line item from the following list:

Accounts Receivable

Inventory

Property, Plant, and Equipment (PP&E)

Accounts Payable

Long-Term Debt

Total Equity

Retained Earnings

2. What does this line item measure and why is it important item for Management to understand this number?

3. From the Balance Sheet, identify the Current Year and the Previous Year closing amounts for your line item. Share these with the class using a data table similar to the below:

Jack's Toy Shop

(In thousands)

2018 2017

Inventory $336.20 $304.50

5. Answer the following questions:

Has the amount for the line item increased or decreased, and by how much (dollar and/or percentage)?

Is this a "good" thing or a "bad" thing for this company?

What might this mean for the organization?

What might management do to improve this line item?