An Introductory-Level Financial Statement Analysis of Private and Public Companies: Recreational Equipment, Inc. versus Dick’s Sporting Goods, Inc.

ABSTRACT This article presents a financial statement analysis project developed as a learning strategy to expose students to the differences in financial reporting requirements for private and public companies. Students in introductory financial accounting courses obtain the most recent annual financial report for Recreational Equipment, Inc. (REI), a private company, and Dick’s Sporting Goods, Inc. (DKS), a public company. After examining each report and calculating key financial statement ratios, students make comparisons between the two companies. A template is provided to organize responses and facilitate comparisons. The students not only assess financial performance but also evaluate reporting requirements and corporate objectives. Student feedback indicates the learning strategy may boost enrollment in future accounting courses, especially among first-year students taking introductory accounting.