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About Red Company

Red Company (RC) utilizes an integrated teaching approach designed to teach students financial statement analysis by using a combination of a textbook/workbook and a software driven financial statement simulation model for a hypothetical company called "Red Company". RC is typically used at the end of Introductory Financial Accounting courses at both the undergraduate and graduate levels. RC can effectively be used in an entry level course as a self-study with little to no lecturing by the instructor. At the completion of RC, students have the ability to perform financial statement analysis on actual public companies and to evaluate their financial performance.

Red Company consists of:

• A 107 page textbook/workbook.
• Extensive interactive teaching software.
• Ten teaching videos (each 10 to 20 minutes).
• End-of-chapter exercises.
• Software driven Annual Report Projects for 4 public companies.

The process of learning financial statement analysis using Red Company is as follows:

• The student reads about financial statement analysis in the Red Company textbook, and is then directed to interact with the Red Company software. The textbook directs the student through this process by guiding the student to make changes to input variables in RC's financial statement simulation model. The software simulation model includes 13 interactive screens.
• The textbook is divided into five chapters, each with end-of-chapter exercises to test the student's knowledge of the new financial statement analysis tools learned in that chapter.
• Ten teaching videos are available to reiterate concepts discussed in the textbook. These videos can be viewed prior to reading the material in the textbook as a way to introduce the topics discussed in the chapters, or can be viewed after reading the material in the textbook to reinforce concepts learned.
• At the end of the book the student applies her new analysis skills to the financial statements of an actual public company in an Annual Report Project. There are Annual Report Projects for 4 public companies included in the Red Company software. Each student is assigned 1 of these companies. The instructor receives automatic grading software for the projects.

Red Company was first used in 2003 at Miami University - Ohio. Now in its 8th edition, RC is used around the country in undergraduate level programs, master's programs, and training programs. Two universities with top 25 PAR rankings use Red Company.