Financial Statement Analysis (NEW in 2008–09)

This event has been designed for Delta Epsilon Chi members with a career interest in the fields of finance and accounting. Based initially on a classroom project that has been popular for years with both instructors and students, this event allows students to take their work from the classroom to the stage. As a capstone classroom project, this event allows accounting and finance programs to demonstrate student learning outcomes by sending their top students to an academic competition.

While this will not be an official competitive event until the 2008-09 academic year, the overwhelming response to this event has led DECA/Delta Epsilon Chi to making these DRAFT guidelines available now for instructors and students. In additional, several state associations will be piloting this event at their spring 2008 state conference. Additional information regarding this process is available in the Guidelines document.

At the International Career Development Conference, a practice round of competition for this event will be held. Participants will be recognized for their involvement.

Objective of the Event

Students will analyze the financial statements of two companies from the same industry, prepare a written analysis, and then present their findings and recommendations to judges. This event will help students develop the ability to understand, analyze, and make decisions based on financial information—these skills are essential to every professional business career.

The two companies to be analyzed for the 2007-08 PILOT TEST of this event are the Campbell Soup Company and General Mills, Inc.

Learning Outcomes

Students will develop or reinforce the following areas in relation to financial analysis, accounting principles, and the analysis of corporate financial statements:

• Demonstrating knowledge of corporate financial statements
• Interpreting financial statements, organizing thoughts and making recommendations
• Applying Generally Accepted Accounting Principles (GAAP) to corporate finances
• Evaluating the performance of your own corporation, or your competitors.
• Examining financial statements to decide whether to extend credit to a particular corporation
• Choosing between alternatives for an organization's investment portfolio
• Analyzing business opportunities from a financial standpoint
• Selecting your personal investments
• Preparing effective written communications
• Organizing and communicating ideas and recommendations effectively
• Accomplishing objectives as a team

Other Characteristics

• Students work in a team of two, acting as financial consultants.
• Each team must prepare a written prospectus (15 pages maximum) according to guidelines.
• Each team has up to 15 minutes to present their analysis and recommendations and answer questions from the judges
• Event has NO test.
• Students are encouraged but not required to use presentation aids including computers and other technologies.

Guidelines, Support Documentation and Financial Reports
The following materials will be provided to judges. Judges will also be given answers to calculations that have a definitive answer.

These guidelines will be used for 2007–08 to pilot test the event.

Additional Information has also been provided to help in the calculations of financial ratios.

Campbell Soup Company:
The financial statements to be used are in the Form 10-K annual report filed with the Securities and Exchange Commission (SEC) on September 26, 2007 for the Fiscal Year Ended 07/29/07. The pdf format Form 10–K provided here is the official document to be used. Additional formats for the 10-K annual report, as well as additional information about the company, are available at www.CampbellSoup.com.

General Mills, Inc.
The financial statements to be used are in the Form 10–K annual report filed with the Securities and Exchange Commission (SEC) on July 26, 2007 for the Fiscal Year Ended 05/27/07. The pdf format Form 10–K provided here is the official document to be used. Additional formats for the 10-K annual report, as well as additional information about the company, are available at www.GeneralMills.com.

For additional information about this event contact Jeff Collins at DECA. To provide feedback about this event for the Postsecondary Program Advisory Council contact Tim Gilmore, Chair.