This course examines the Income Statement and the Balance Sheet, their respective structures and relationships as they correlate to business activities, and introduces common methods of analysis when using these financial statements to measure a business's financial performance.Learning Objectives
- The Basis of the Income Statement and Balance Sheet
- Recognize the benefits in understanding the basis of the Income Statement and the Balance Sheet as a key in understanding how business decisions are made.
- Income Statement and Balance Sheet Connection
- Determine the connection between the Income Statement and the Balance Sheet as they reflect different business activities.
- How the Income Statement Reflects Business Decisions
- Relate line items in the Income Statement to business decisions and strategies.
- How the Balance Sheet Reflects Business Decisions
- Common Size Analysis
- Recognize the benefit of using common size analysis of the Income Statement and Balance Sheet to understand the business strategies that a company is employing.
- Common Size Statements
- Use common size analysis to determine management strategies and outcomes.
- Trend Analysis
- Use "change over time" (or "trend") analysis to identify and interpret trends in business strategies.
- Common Size Ratios
This course is targeted specifically for business managers, financial professionals, and other business professionals who have the need to understand financial statements.