Advanced Financial Statement Analysis

Learn a comprehensive approach to financial statement analysis.

The material will begin with analyzing the four financial statements- Income Statement, Statement of Retained Earnings, Balance Sheet, and Statement of Cash Flows. This will include Revenue and Expense Recognition, FIFO, LIFO, and Average Inventory Costing Models, Operating Expenses (Repairs) versus Improvements, Depreciation including Straight-Line, Units-of-Production, and Double-Declining Balance, Amortization, and Depletion. The topic will also explore Accounts Receivable assessment, Allowance for Doubtful Accounts, Intangible Assets, Accounts Payable assessment, Capital and Operating Leases, and analysis of the Equity Section of the Balance Sheet including Partners' Capital Accounts, Common and Preferred Stock, Treasury Stock, Stock Splits, and Retained Earnings. Additionally, the types or levels of financial statements will be highlighted including Company-Prepared, Compiled, Reviewed, and Audit. The Audited Financial Statements will include 'Unqualified, Qualified, Adverse, and Disclaimer.' You will then be introduced to a 'five-part' Financial Statement Analysis Model which will include the Liquidity, Activity, Leverage, Operating Performance, and Cash Flow Additionally, the related topics of the Z-Score (bankruptcy predictor) and the Sustainable Growth models will be reviewed. Two case studies will be used to illustrate the 'five-part' analysis model and the 'correct' interpretation of the financial statements.