Forum 1 - Prepare a comparative balance sheet, income

Forum 1

Prior to beginning work on this discussion forum, read Chapter 12 in the course textbook, Using Financial Accounting.

Using the same company and annual reports that you chose for your Reading and Using the Annual Report Case Study discussion forum in Week 1,

• Prepare a comparative balance sheet, income statement, and statement of cash flows, and perform a horizontal analysis of the company’s balance sheet, income statement, and statement of cash flows for the most recent 2 years. Identify at least one significant change (increase or decrease) from one year to the next in a balance sheet account, income statement account, and statement of cash flows account. 
• Identify the causes of the change in each of these accounts. 
• Discuss the implications of each of these account changes, and your assessment of the company based on these changes. Do these changes reflect positively or negatively on the company, and what is your assessment of the outlook for the company?