Financial Statement Analysis

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.

NEW: The two companies to be analyzed for 2009-10 are La-Z-Boy, Inc and Ethan Allen Interiors, 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 teams of 2 or 3, acting as financial
  consultants.
• Each team must prepare a written prospectus (15 pages maximum) according to guidelines.
• Each team has up to 20 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 2009–10.

Additional Information is provided to help in the calculations of financial ratios. While the calculations are to be based on the year-end fiscal information as stated below, students should reflect the current status of the companies in the Public Perception section each time they present their analysis.

IMPORTANT NOTES

1. Due to recent large scale changes in the industry, students will not be required to obtain or analyze industry standard ratios. In Section 4: Ratio Analysis, participants should calculate the ratios for each of the two companies and draw conclusions from only that data.
2. In Section 5: Public Perception, students should research how the recent economic conditions have affected each of the two companies. Participants should consider each of the company’s beta in their analysis of the level of risk involved in investing its securities.

La-Z-Boy, Inc.
The financial statements to be used are in the Form 10-K annual report filed with the Securities and Exchange Commission (SEC) on June 15, 2009 for the Fiscal Year Ended April 25, 2009. The pdf format Form 10-K (located within the Annual Report) provided here is the official document to be used. Additional formats for the 10-K annual report, as well as additional company information, are available at www.la-z-boy.com.

Ethan Allen Interiors, Inc.
The financial statements to be used are in the Form 10-K/A annual report filed with the Securities and Exchange Commission (SEC) on August 27, 2009 for the Fiscal Year Ended June 30, 2009. The pdf format Form 10-K/A provided here is the official document to be used. Additional formats for the 10-K/A annual report, as well as additional company information, are available atwww.ethanallen.com.