Introduction:

A company's financial statement is kind of like its report card: it can tell you how a company has done in the past, but not necessarily how it will do in the future. Nevertheless, every investor should understand the basic facts and figures of a financial statement and be able to use them when making investment decisions. In this lesson, you will learn how to use We Seed's financials to do some simple analysis of company performance.

Overview:

This lesson introduces students to the financial statement at a very elementary level by looking mainly at revenue. If you want to take a deeper look, you may want to integrate an existing lecture on financial statements into the first part of class. Students will select a company and explore basic elements of its financial statement to assess performance.

Learning Objectives:

• Gain a basic understanding of financial statements and associated terms
• Understand how different companies earn different levels of revenue
• Understand how analyzing company performance should play a role in investment decisions

Learning Environment:

The exercise should be conducted in a computer lab or as a homework assignment.

Time requirement:

45 - 60 minutes

Prerequisites:

Students should have satisfactorily completed lesson 1.

Print or download a complete version of the lesson plan with student worksheets below.

  

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