Understanding Financial Statements

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The Finance 3.0 Understanding Financial Statements program is designed for entrepreneurs, non-finance professionals, aspiring finance professionals, as well as beginner self-directed investors, to grasp the structure and definitions of the balance sheet, profit & loss and cash flow statements of a business.

By completing this program, you will develop deeper, structured insight into why past, current and forecast financial statements of a business are constructed the way they are, and define a framework for conducting further financial analysis on the business entity’s performance.

The program consists of 6 courses:

• Financial Statements-A Preview
• Fundamentals of Financial Statements
• Introduction to Financial Statement Analysis
• Understanding the Income Statement
• Understanding the Balance Sheet
• Understanding the Cash Flow Statement

Program Details

1. Financial Statements – A Preview

• What Financial Statements are?
• Importance of Financial Statements
• Various users of Financial Statements and how do they use them

2. Fundamentals of Financial Statements

• Basic Accounting Principles- Concepts & Conventions that underlie financial statements
• Accounting Equation- a tool to understand why a balance sheet tallies
• Presentation of Financial Statements
• Interrelation between Income Statement and Balance Sheet

3. Introduction to Financial Statement Analysis

• Lays out requirements for analyzing financial performance of a company.
• Provides a general framework of requirements associated with analysis of balance sheet, income statement, and cash flow statement.
• Gives an insight of the notes to principal financial statements, and management discussion and analysis of results.
• As a whole, presents a general framework for addressing most financial statement analysis tasks.

4. Understanding the Income Statement

• Focuses on one of the major financial statements i.e., the income statement.
• Details the purpose, construction, and common-size analysis of income statement.
• How to evaluate trends in performance over several measurement periods and to compare the performance of different companies over the same period(s).
• Additional analyst tools such as the earnings per share calculation are also discussed.

5. Understanding the Balance Sheet

• Details the purpose, construction, pertinent ratios, and common-size analysis of balance sheet.
• Describes and illustrates the format, structure, and components of the balance sheet.
• Discusses the classification and valuation basis of assets and liabilities.
• Describes the components of equity and illustrates the statement of changes in owners’ equity.
• Focuses on balance sheet analysis by illustrating common-size balance sheets and calculating pertinent ratios.

6. Understanding the Cash Flow Statement

• Focuses on one of the major financial statements i.e., the cash flow statement.
• Details the purpose, construction, and common-size analysis of the cash flow statement.
• How to evaluate trends in performance over several measurement periods and compare the performance of different companies over the same period(s).

$100 – 12 Month Program – Enroll Now