Interpreting Financial Statements: Cash Flows and Overall Performance

Course Status:	Released
Course Language:	English
Course Duration:	4 Hours
Deployment Options:	Online, Interactive CDs, Network, Downloads, Intranet

Audience

Managers, prospective managers, and any other employees seeking advanced competency in the area of interpreting financial statements

Prerequisites

A basic understanding of the accounting function

Course Aim

To explain how a business performance can be evaluated through the financial statements, including the statement of cash flows, and through ratio analysis

Learning Objectives

Identify and explain the statement of cash flows. Explain 'direct format' and 'indirect format'. Discuss the investing and financing sections of the balance sheet. Discuss the role of financial statements in the capital market. Explain how external users analyze financial statements. Explain activity ratios. Explain how ratios are used to assess liquidity and solvency. Explain the various types of profitability ratios. Discuss dividend and stock ratios.

Topics Covered

The Statement of Cash Flows - What is the statement of cash flows? - Cash flows from operating activities - Cash flows from investing and financing activities Statement Analysis - Statements and the capital market - External statement analysis Ratio Analysis - Activity ratios - Liquidity, solvency, and debt repayment - Hands-on: Identifying ratios Ratios for Investing - Profitability ratios - Dividends and stock ratios