Financial Statements and Analysis

Overview/Description
 Financial statements are the most important vehicles organizations use to report their performance and financial condition to investors and lenders. By understanding them, nonfinancial managers can gain insight to senior management's thinking. This course will provide a foundation for reading and analyzing the three key financial reports prepared by most corporations.

Target Audience
 Nonfinancial managers at all levels

Expected Duration
2.5 hours

Lesson Objectives:

The Balance Sheet

  • recognize the value of a balance sheet.
  • match the key categories of assets reported on a balance sheet to different examples.
  • select the types of liabilities reported on a balance sheet.
  • categorize the key information reported on a balance sheet appropriately as assets, liabilities, or equity.

    • The Income Statement

  • recognize the value of the income statement.
  • identify the key elements in calculating gross profit on an income statement.
  • select the key elements in calculating net income after taxes on an income statement.
  • select the correct earnings per share calculation, given the appropriate financial information.

    • The Cash Flow Statement

  • recognize the value of a cash flow statement.
  • select the activities generally reported on a cash flow statement.
  • select the indicators of "sources of funds" on a cash flow statement.
  • identify the indicators of "uses of funds" on a cash flow statement.

    • Basic Financial Report Analysis and Ratios

  • recognize the benefit of ratio analysis.
  • identify the meaning of liquidity ratios.
  • select the key elements used to calculate the debt ratio and the debt-to-equity ratio.
  • match the profitability ratio to its appropriate calculation.

    • Course Number: FIN0144