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Financial Statements and Analysis of Companies


90-723

Units: 6

Description

This course provides an overview of how managers, investors, creditors, and other parties use financial information to assess the financial and operating performance of companies.    

In the first half of the course, we will gain an understanding of the financial reporting process and the organizations that govern financial accounting.  We will learn what financial reports are required for publicly traded companies and begin our analysis by learning about the Balance Sheet and the Income Statement.  We will begin performing financial analysis on these financial statements. 

In the second half of the course, we will continue our financial statement analysis by learning about the Statement of Cash Flows, focusing on the importance of cash flows from operations.  We will expand on our financial analysis and will cover common size financial statements, vertical and horizontal analysis and other key financial ratios. 

Learning Outcomes

-Describe the components of a Form 10-K and locate financial information for public companies

-Explain the challenges of accounting rules and managements impact on financial reporting

-List and describe asset, liability and stockholder equity accounts and be able to perform an analysis comparing to the prior year

-Use a Balance Sheet to assess a company’s financial position at the end of a current year and compared to the prior year

-Describe operating and non-operating revenue and expense accounts from the Income Statement

-Perform an analysis of the Income Statement to determine operating performance of a company for the current year and over a three year period

-Explain the purpose of the Statement of Stockholders’ Equity

-Define operating, investing and financing activities from the Statement of Cash Flows

-Detail reasons why Net Income and Cash Flow from Operations are both important measures for company profitability

-Compute and evaluate key financial ratios for various companies

Prerequisites Description

None

Syllabus