BABSON ACTIVITIES:

1. Call to Action: Why Have Financial

Statements
Name and business of your company
b. Take a quick look at the income statement, balance sheet, and statement of cash flows for
your company. Anything jump out at you? Sales bigger or smaller than you imagined? Is net
income what you thought it might be? Is the information a little easier to read than you thought?
Does there accounting (fiscal) year end when you expected (look at the column headings on the
balance sheet or income statement)? Post 1 or 2 items that you find most interesting, unusual,
or confusing after a quick review of the financial statements.

2. Knowledge Check: Introduction to Financial Statements

For each of the following accounts, indicate which section of the Balance
Sheet, Income Statement or Statement of Cash Flows it is normally
presented.

3. Call to Action: The Balance Sheet

For the firm you have chosen to review – answer the following questions:

1. What are the 3 biggest assets on the balance sheet?

2. What are the 3 biggest liabilities on the balance sheet?

3. Are these consistent with your understanding of your firm’s business,

industry, and strategy?

Post a short summary of your findings to the discussion forum and compare your
findings with other people in the class. Does anything surprise you?