Details

We have now covered the three major financial statements – the Income Statement, the Balance Sheet, and the Cash Flow Statement. We have identified the formats of the statements and we have covered in some detail the different items specifically presented in each. Furthermore, we have begun to cover the tools available to us to help us interpret and analyze the statements. Knowing what you now know of the statements, so please review in your minds all that we have discussed thus far in this course as it relates to the statements and respond to the following:

First – of the three primary statements, which one is the most important or most beneficial to analysts and WHY?

Second – keeping in mind what you will discuss relative to Section 6 of the Research Project Assignment, what are the major items or information that each of the three statements convey to us and what will you focus on relative to these three primary financial statements in Section 6 of your research effort?

(For this, try to think as an analyst – why do we read the statements and what do we hope to learn from each one? Remember, analysis is all about looking at observations we make relative to the statements and then asking the question WHY? or SO WHAT?)
In addressing this discussion, think about KROGER as a company and what you see as the more important issue or issues you have observed thus far relative to each statement.