Look at the four basic financial statements for Staples, found in the book's appendix. Find the total assets, liabilities, and shareholders' equity for the two most recent years. As a group, discuss the change in the company's financial position without looking at the income statement. Jot down your opinions. Then, study the income statement for the most recent year. Do the results support your opinions about the balance sheet changes? What information do these statements provide for your analysis? What additional information would be useful? After answering these questions as a group, look at the notes to the financial statements. Do the notes help answer any of your questions?

Make a list of 10 questions you have about the financial statements. Try to answer them and discuss why you would like answers to these questions. Save the list so you can check to see how many of the questions you are able to answer at the end of the course.