Seat Time: 0.75hrs - Desc:
This course will introduce the learner to the process by which performance and condition are analyzed. The course will familiarize the learner with spreading financial statements and the proper analysis of balance sheets and income statements. After completing this program the learner will understand:
- How to transfer data from financial statements to the accountant.
- How the company is able to meet short-term obligations.
- How to use income statements to measure and analyze profits.
T1. Spreading Financial Statements: This topic will explain the process of transferring data from financial statements to the accountant, or from the company-prepared format to the standard format, (financial statement spreading), in addition to explaining common spreading, balance sheet, and income statement adjustments, and conservatism to the learner.
T2. Analyzing the Balance Sheet: This topic will explain a company's ability to meet short-term obligations (liquidity), the relationship between current assets and current liabilities, the three tools used by lenders in liquidity analysis, and measuring and analyzing leverage.
T3. Analyzing the Income Statement: This topic will explain the lender's primary tool in measuring and analyzing profit (profit margins), expressing profits, what the gross profit margin measures, the steps required to analyze a company's gross margin, and what the operating expense ratio measures to the learner.