Replaced by course NGE48602

Course Code NGE48502

Contents

1. Contents
2. Description
3. Audience
4. Prerequisites
5. Objectives
6. Topics Include
7. Duration
8. Minimum Requirements
9. Media

Screenshot

Description

In Financial Management: Understanding Financial Statements, participants develop an in-depth understanding of the purpose and uses of each of four financial statements-the income statement, the balance sheet, the cash flow statement, and the statement of stockholders' equity-and practice preparing and interpreting each of these tools.

Audience

Managers and employees who want to learn more about financial statements.

Prerequisites

(Currently no course prerequisite information)

Objective

• Prepare and use income statements to identify net operating margin and profit margin on sales.
• Define capital, preferred, and common stocks.
• Differentiate between different types of assets and liabilities.
• Create and use a balance sheet to calculate working capital, current ratio, and debttototalassets ratio.
• Identify operating, investing, and financing activities.
• Prepare and use statements of cash flow and stockholders' equity.

Topics Include

Unit 1: Background Information

• List the four financial statements that provide a picture of your organization's financial position.
• Describe the overall purpose of each of the four financial statements.
• Explain why it is important to interpret financial statements.
• Simulation Overview:
• In this simulation, you will be meeting with Carla Jackson, one of Icon International's Human Resources Assistants, to discuss financial statements. Through your questions, you will learn about the four most important financial statements and their roles in accounting.

Unit 2: The Income Statement

• List the four categories of expenses found on an Income Statement.
• Define several items on an Income Statement, including gross profit on sales and operating profit.
• Follow the five-step process for preparing an Income Statement.
• Calculate an organization's net operating margin.
• Calculate an organization's profit margin on sales.
• Identify the three areas that should be investigated if gross profit on sales is inadequate.
• Simulation Overview:
• In this simulation, you will be meeting with Don Hamilton, Icon's Vice President of Sales, to discuss the Income Statement. Through your questions and answers, you will learn how to organize an Income Statement, how to perform calculations based on an Income Statement, and how to use an Income Statement to determine if an organization is operating efficiently.

Unit 3: The Balance Sheet

• Differentiate between current and fixed assets.
• Differentiate between current and long-term liabilities.
• Define capital, preferred, and common stock.
• Follow the seven-step process for preparing a Balance Sheet.
• Calculate an organization's working capital and current ratio.
• Calculate an organization's debt-to-total-assets ratio.
• Simulation Overview:
• In this simulation, you will be meeting with Janet Porter, Icon International's Director of Business Development, to discuss the Balance Sheet. Through your questions and answers, you will learn the types of assets and liabilities, how to prepare a Balance Sheet, and how to use a Balance Sheet to calculate an organization's liquidity.

Unit 4: Cash Flow Statement and Statement of Stockholders' Equity

• Provide examples of operating activities.
• Provide examples of investing activities.
• Provide examples of financing activities.
• Follow the five-step process for preparing a Cash Flow Statement.
• Prepare a Statement of Stockholders' Equity, following the four appropriate steps
• Simulation Overview:
• In this simulation, you will be meeting with Fred Ervin, Icon's Director of Marketing, to discuss the Cash Flow Statement and the Statement of Stockholders' Equity. By completing several exercises, you will learn how to organize and calculate both of these statements.

Duration

4

Minimum Requirements

The CDROM version of this course requires:

• At least a 486DX 33Mhz CPU.
• Microsoft Windows 3.1 or higher and a Microsoft compatible mouse.
• At least 8MB RAM.
• At least VGA graphics capability with a minimum 512K video RAM (1MB video RAM recommended).
• At least a double speed CDROM drive.
• An MPC compliant sound card with attached speakers or headphones is recommended (Currently, only the CDROM version supports audio).

• At least a 486DX 33Mhz CPU.
• Microsoft Windows 3.1 or higher and a Microsoft compatible mouse.
• At least 8MB RAM and 22MB available hard disk space or file server space.
• At least VGA graphics capability with a minimum 512K video RAM (1MB video RAM recommended).

Media