Financial Statements


Overview/Description
Target Audience
Prerequisites
Expected Duration
Lesson Objectives
Course Number


Overview/Description
Organizations use financial statements to report their performance and their financial condition to investors and lenders. Managers--including non-financial managers--can use these statements to understand how the organization is doing: Are any changes needed? Can the organization improve? How quickly is the organization growing in comparison with its competitors? Are there any financial danger signs? This course provides a foundation for reading the three key financial statements prepared by most corporations--the balance sheet (or statement of financial condition), the income statement (or earnings statement, or profit and loss statement), and the statement of cash flows. The course also explores how to use basic ratios to analyze these financial statements.

Target Audience
Non-financial managers who seek a basic understanding of financial statements

Prerequisites
None

Expected Duration (hours)
2.0

Lesson Objectives

Financial Statements

  • recognize the value of understanding a balance sheet.
  • calculate the value of key categories of assets for a balance sheet, given hypothetical financial information.
  • identify examples of assets that appear on a balance sheet.
  • select examples of the types of liabilities reported on a balance sheet.
  • recognize the value of understanding the income statement and the statement of cash flows.
  • use the key elements to calculate the gross profit for a hypothetical organization.
  • identify examples of the key elements for calculating gross profit on an income statement.
  • calculate the amount of funds using hypothetical cash flow information.
  • select examples of the categories of cash from the activities reported on a cash flow statement.
  • match uses of funds with examples.
  • recognize the benefits of using ratios to analyze financial statements.
  • calculate the appropriate ratio analysis data needed to answer specific questions about financial conditions.
  • match examples of ratio analyses to their purposes.
  • calculate return on equity, return on sales, and gross margin given hypothetical business and financial data

    • Course Number:
    fin_01_a04_bs_enus