About This Course:
The principal goal of this course is to enable you to analyze the balance sheet and income statement.
What You'll Learn:- Explain the history and purpose the balance sheet and income statement.
- Demonstrate how common sizing the accounts can be used to help analyze both the balance sheet and income statement.
- Perform horizontal and vertical analysis on both the balance sheet and income statement.
- Define the difference between assets, liabilities and owner's equity.
- Identify both current and non-current assets and liabilities.
- Identify questions to ask management about selected balance sheet accounts.
- Explain the difference between Lifo and Fifo
- Explain the different depreciation methods used with fixed assets.
- Provide definitions for selected balance sheet accounts such as:
- Leases
- Intangibles
- Deferred Taxes
- Treasury Stock
- Additional paid in capital
- Retained Earnings
- Goodwill
- Other comprehensive income
- Examine the balance sheet for liquidity and leverage
- Define the balance sheet and income statement accounts that would be considered primary and secondary sources of repayment on a loan.
- Explain how income serves as one of the principal components of cash available for debt repayment and maintaining company viability.
- Develop questions to ask management about revenues and expenses.
- Explain how cost of goods sold can differ in a manufacturer versus a retailer or wholesaler
- Explain the difference between gross profit, operating profit and net profit
- Identify typical operating expenses.
- Define a fixed versus a variable expense.
- Explain other income and expenses.
- Define extraordinary items.
- Explain how the notes to the financial statements are used to further explain information on the balance sheet and income statement.
Who Should Attend:Commercial lenders, credit analysts, small business lenders, middle market lenders, private bankers; loan review specialists, special assets officers, lending managers and credit officers.