Explain how mathematics is used in the preparation of financial statements.

Obtain approval from your instructor for a company that you will analyze for this project. The company must be from this list.

Download the most recent Annual Report from your chosen company’s Web site; this is commonly located on the Investor Relations page. Prepare a report analyzing business mathematics concepts. Be sure to include the following in your report:

  • Explain how mathematics is used in the preparation of financial statements.
  • Discuss examples of business problem solving using mathematics from the Annual Report.
  • Explain the cost recovery methods used in the Annual Report, and indicate how these are factored into the Balance Sheet and Income Statement.
  • Discuss the types of indebtedness reported on the Balance Sheet and how the interest is computed.
  • Prepare and explain a horizontal analysis of the Balance Sheet for all years presented in the Annual Report.
  • Prepare and explain a vertical analysis of the Income Statement for all years presented in the Annual Report.
  • Explain the importance of using ratios and percentages in communicating financial results
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