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This exercise is to accompany the background note. This background note explains the influence of business cycle fluctuations on corporate financial statement items. A companion exercise illustrates the process of financial analysis in the investment valuation context. The exercise means to mimic actual business practice in sell-side and buy-side financial analysis. It involves fictional individuals and hypothetical descriptions inspired from actual business practice, adapted to serve as a basis for class discussion. The students will work on common-size balance sheet data for six companies and match these data with a company verbatim presented in random order. Then students will leverage their skills in strategy and business cycles to come up with a list of companies most likely to suffer from a potential recession. The background note underscores the intricacies of the links between accounting, finance and economics.