Understanding Financial Statements
In order for organizations to succeed, leaders and managers must be able to accurately interpret and utilize financial reports. They must also be able to assess the overall financial performance of the organization, a particular department, or the competition, and then convey the organization's financial condition to its constituents.
In this course, participants will learn how to read and interpret income statements, balance sheets, and cash flow statements. By understanding the information contained in each of these key reports, participants will have a solid foundation upon which to base more advanced analysis of their firm's financial performance.
Who Should Take this Course?
This course is essential for all managers and professionals who regularly work with financial reports and also provides non-financial professionals with the core principles of financial reporting.
Participants who complete this course will be able to...
- Understand and interpret the information found in the three principle financial statements
- Understand how the three reports relate to one another and how they are combined (with additional information) to serve as an annual report
- Work with online sources of financial information to conduct research on other publicly-traded firms and industries
Module 1- Reading the Income Statement
- Understanding the purpose of the income statement and its overall structure
- Interpreting the income statement line by line
- Using the income statement
Module 2 - Reading the Balance Sheet
- Understanding the purpose of the balance sheet and its overall structure
- Interpreting the balance sheet line by line
- Using the balance sheet
Module 3 - Reading the Cash Flow Statement
- Understanding the purpose of the cash flow statement and its overall structure
- Interpreting the cash flow statement line by line
- Using the cash flow statement
Module 4 - Other Elements of Financial Reporting
- The purpose of an annual report
- Online sources of financial information
- GAAP and FASB, and their influence on the structure and use of these financial statements
- Scott Gibson, Professor of Finance and J.E. Zollinger Term Professor, The College of William & Mary School of Business
- Steven Carvell, Professor;Academic Director of the Center for Real Estate and Finance, School of Hotel Administration