Student

FINANCIAL STATEMENT ANALYSIS

OBJECTIVE

The Financial Statement Analysis event involves a team of 2-3 participants analyzing financial statements of two (2) companies from the same industry, preparing a written analysis, and then presenting their findings and recommendations. For 2012-2013, participants will analyze financial statements for CVS Caremark and Walgreen Co. and Subsidiaries This event was created in response to the career opportunities available for college graduates in the accounting and financial services fields. Upon completion of the written prospectus and presentation, participants will be very familiar with the two corporations that were analyzed. This event will help participants develop the ability to understand, analyze, and make decisions based on financial information—these skills are essential to every professional business career. Students will also learn how to work effectively as a team.

2012-2013 COLLEGIATE DECA GUIDE

ADDITIONAL RESOURCES

In addition to these guidelines, additional information is provided on the Web site (www.collegiatedeca.org) including: formulas and guidelines for calculations, information about the two (2) companies being analyzed, any special considerations related to the specific companies or current economic conditions, tips for competing, and ideas for using this event as a classroom project.

DESCRIPTION

In the Financial Statement Analysis event, teams are given the task of reviewing the annual reports of two companies whose primary operations are within the same industry. The teams will be acting as financial consultants. The team will be analyzing each company’s annual report (10-K filing), which serves as a “résumé” of a corporation. Much of the information provided in corporate annual reports and in the 10-K is dictated by Generally Accepted Accounting Principles (GAAP) and by the Securities and Exchange Commission (SEC). Specifically, GAAP requires annual reports to disclose four...