Understanding your company’s financial health helps you allocate resources and pinpoint areas for development. With this course, you’ll learn how to interpret the corporate annual report, including financial statements, footnotes, review of operations, auditor's report, supplementary schedules, management discussion and analysis, and Management’s Report on Internal Control Over Financial Reporting. This course also covers how SOX 404 and traditional reporting differ. Finally, this course teaches you how to perform financial ratio and cash flow analyses.
Upon successful completion of this course, participants will be able to:
- Identify the basic financial statements of the annual report and their purpose: the balance sheet, income statement, and statement of cash flows.
- Recognize the elements of the balance sheet.
- Recognize how the income statement reveals the entity's operating performance.
- Identify a company's cash inflows and cash outflows.
- Identify the types of accounts that may exist in the financial statements.
- Identify the other sections and items of the annual report.
- Recognize auditing standards for internal control over financial reporting, including the Sarbanes-Oxley Act.
- Identify important factors for financial statement analysis.
- Recognize techniques of horizontal analysis and vertical analysis.
- Calculate different types of ratio analysis.
- Identify types of ratio analysis.
- Recognize some of the limitations of different ratio analysis.
- Apply financial ratios calculations.
Table of Contents
Chapter 1 – Annual Report: Its Components
What and Why of Financial Statements
More on the Income Statement
Classified Financial Statements
Classified Income Statement
Classified Balance Sheet
Liabilities and Stockholders' Equity
Statement of Cash Flows
Contents of the Statements of Cash Flows
Cash Flow Analysis
Preparing and Analyzing the Statement of Cash Flows
Statement of Cash Flows and Corporate Planning
Chapter 1 Review Questions
Chapter 2 – Other Sections of the Annual Report
Other Sections in the Annual Report
Review of Operations
Independent Auditor's Report
Adverse or Disclaimer of Opinion
Notes to the Financial Statements (Footnotes)
Supplementary Schedules and Tables
Two-Year Quarterly Data
History of Market Price
How to Read a Quarterly Report
SEC Reporting Requirements -Integrated Disclosure System
Management's Discussion and Analysis (MD&A)
The Sarbanes-Oxley Act
Key Points of Auditing Standard No. 5
Chapter 2 Review Questions
Chapter 3 – Analysis of Financial Statements for Liquidity, Asset Utilization, and Solvency
What and Why of Financial Statement Analysis
Horizontal and Vertical Analysis
Working with Financial Ratios
Solvency (Leverage and Debt Service)
Chapter 3 Review Questions
Chapter 4 – Analysis of Financial Statements for Profitability and Market Value
Profitability and Market Value
An Overall Evaluation – Summary of Financial Ratios
Is Ratio Analysis a Panacea?
The Power of Cash Flow Ratios
Summary of Financial Ratios - Trend and Industry Comparisons
Chapter 4 Review Questions
Chapter 1 Review Question Answers and Rationales
Chapter 2 Review Question Answers and Rationales
Chapter 3 Review Question Answers and Rationales
Chapter 4 Review Question Answers and Rationales
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