Lesson Plan:

Aim
Students will be able to identify and explain the elements of financial statements and how to
analyze the financial health of a business.

Objectives
1. Students will be able to identify the components of a financial statement and describe their
purpose.
2. Students will be able to explain the importance of financial statements and the role they play
in analyzing the financial health of a business.
3. Students will be able to explain the components of the balance sheet and the income
statement.
4. Students will be able to analyze the financial health of a business by interpreting financial
statements.

Possible Materials Needed

1. Textbook or educational handouts on financial statements
2. Financial statements of a sample company
3. Financial statements worksheet
4. Financial statements PowerPoint Presentation
5. Short video on financial statements

Anticipatory Set
1. Begin the lesson by introducing the concept of financial statements and their importance in
analyzing the financial health of a business. Ask the class to consider the different components
of a financial statement and how they can be used to understand the financial health of a
company.

2. Ask the class to consider how different stakeholders might use financial statements and how
they can be used to make decisions. Explain that financial statements can provide an insight
into the financial position of a business and can be used to compare the performance of a
business over time.

3. Lastly, provide an example of a financial statement and explain the different components,
such as assets, liabilities, income, and expenses. Ask the class to consider how each of these
components might affect the financial position of the business.
Modeled Practice
1. The teacher can provide an example of a financial statement and explain the different
components such as assets, liabilities, income, and expenses. The teacher can then ask the
class to identify the different components and how they might affect the financial position of the
business.

2. The teacher can provide a hands-on activity to help the students understand the components
of a financial statement. The teacher can provide the class with a blank financial statement
worksheet and ask them to complete it using the financial statements of a sample company.
Ask the class to identify the different components of the financial statement and how they might
affect the financial position of the business.

3. The teacher can provide a discussion-based activity to help the students understand the
importance of financial statements and how they can be used to analyze the financial health of a
business. Ask the class to consider a particular company and discuss how financial statements
might be used to understand the performance of that company. Ask the class to consider
how different stakeholders might use financial statements and how they can be used to make
decisions.

Guided Practice
1. Divide the class into small groups and have each group analyze the financial statements of a
sample company. Ask each group to identify the different components of the financial statement
and how they might affect the financial position of the business. Once the groups are finished
analyzing the financial statements, have them present their findings to the class and discuss
how the different components might impact the financial health of the business.

2. Divide students into small groups and assign each group a different company. Ask each
group to analyze the financial statements of their assigned company and identify any trends or
patterns. Allow each group to present their findings to the class and discuss how the financial
statements can be used to understand the performance of the company.

3. Provide students with a worksheet that asks them to consider how the components of a
financial statement might affect the financial position of a business. Ask them to analyze the
financial statements of a sample company and identify any trends or patterns. Ask them to
consider how different stakeholders might use financial statements and how they can be used
to make decisions.
Independent Practice
1. Ask students to research one particular company and create a poster that includes informa-
tion about the components of the company's financial statement and how they might affect the
financial position of the business. Students should also include a discussion of how different
stakeholders might use financial statements and how they can be used to make decisions.

2. Ask students to write a story about a company and how financial statements can be used to
understand its performance. The story should include how different components of the financial
statement might affect the company's financial health and how different stakeholders might use
financial statements to make decisions.

3. Ask students to create a PowerPoint presentation that explains how different components of a
financial statement can be used to analyze the financial health of a business. The presentation
should include information on how different stakeholders might use financial statements and
how they can be used to make decisions. The presentation should also include information on
the components of the balance sheet and the income statement.

Common Areas of Struggle

When it comes to learning about financial statements, the most common struggle is under-
standing the different components of a financial statement and how they affect the financial
health of a business. Students may also have difficulty understanding the concept of how
financial statements can be used to make decisions and how different stakeholders might
use them. Another area where students struggle to comprehend is how to interpret financial
statements and how to analyze the financial health of a business.

Ensure that students are given plenty of opportunity to practice and discuss the different
components of a financial statement and how they interact with each other. Provide plenty
of examples and visuals to help students better understand the concept. Encourage students
to ask questions and engage in discussions about the different components of a financial
statement.

Closure
At the end of the lesson, the teacher can ask the class to complete a writing prompt that asks
them to consider how a financial statement can be used to analyze the financial health of a
business. Ask the students to consider how different components of the financial statement
might affect the financial position of the company and how different stakeholders might use
financial statements to make decisions. The teacher can also assign a quiz to assess the
students' understanding of the concepts discussed in the lesson. It is important to provide
students with feedback on their work so that they can understand what areas they need to
focus on and improve.

Be sure to ask questions often related to the common areas of struggle.