Financial Management: Analyzing Financial Statements (replaced by NGE48605)

Course Code NGE48505

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: Analyzing Financial Statements, participants will learn about the various tools available for analyzing financial statements.

Audience

Managers who want to learn how to use various tools to analyze financial statements.

Prerequisites

(Currently no course prerequisite information)

Objective

• Calculate three types of liquidity ratios.
• Calculate four types of activity ratios.
• Calculate two types of leverage ratios.
• Calculate six types of profitability ratios.
• Calculate an organization's breakeven point.
• Perform a horizontal and a vertical analysis on an Income Statement.

Topics Include

Unit 1: Background Information

• List the three types of tools available for analyzing financial statements.
• Discuss the limitations of the information provided by analyzing financial statements.
• Simulation Overview:
• In this simulation, you will meet with Maggie Roberts, Icon's Assistant Controller, to discuss the purpose and importance of analyzing financial statements. Through your questions, you will learn the types of tools available to analyze financial statements and the limitations you may encounter when analyzing financial statements.

Unit 2: Liquidity, Activity, and Leverage Ratio Analyses

• List and define the three categories of ratios used to analyze financial statements.
• Calculate three types of liquidity ratios.
• Calculate four types of activity ratios.
• Calculate two types of leverage ratios.
• Simulation Overview:
• In this simulation, you will meet with Nicholas Richter, Icon's Director of Finance. By completing several exercises, you will learn the importance of ratio analyses. Additionally, you will learn how to calculate liquidity, activity, and leverage ratios.

Unit 3: Profitability Ratio Analysis

• State the difference between analyzing an Income Statement and a Balance Sheet.
• Calculate six types of profitability ratios.
• Calculate an organization's break-even point.
• Simulation Overview:
• In this simulation, you will meet with Janet Porter, Icon's Director of Business Development, to discuss profitability ratio analysis. By completing several exercises, you will learn how to calculate several probability ratios, the importance of analyzing an Income Statement, and the process used to calculate an organization's break-even point.

Unit 4: Comparative and Percentage Analyses

• State the difference between comparative and percentage analyses.
• Perform a horizontal analysis on an Income Statement.
• Perform a vertical analysis on an Income Statement.
• Simulation Overview:
• In this simulation, you will meet with Ronald Spear, Icon's Corporate Controller. By completing several exercises, you will test your knowledge of comparative and percentage analyses. Ronald will be asking you to answer several questions about comparative analysis and percentage analysis, and their compatibility with each other and with ratio analysis.

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