How to Read Financial Statements: Build Financial Literacy.
Original price was: $24.99.$17.99Current price is: $17.99.
What you may study
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Explain how the stability sheet, earnings assertion, and assertion of money flows are used, what they measure, and why we want three statements.
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Differentiate between earnings and money stream
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Explain what’s the stability sheet equation and why the stability sheet equation is the foundational mannequin for accrual accounting/double entry accounting
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Define what are property, liabilities, and fairness and the way property, liabilities, and fairness relate
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Explain how the assertion of money flows and earnings assertion hyperlink into the stability sheet
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Explain how accounts work like buckets
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Locate an actual firm’s annual report at their web site and find their monetary statements throughout the annual report
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Explain who’re the six most necessary stakeholders of a company (staff, prospects, authorities, distributors, lenders, buyers)
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Explain the give and take of a transaction and the way to report either side of the transaction individually with the six stakeholders
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Explain which aspect of the give and take seems on the earnings assertion and on the assertion of money flows
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Explain why you possibly can’t measure revenue with money and why you want to use accrual accounting (double-entry accounting), not money accounting
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Illustrate how accrual accounting can each report money and income utilizing a spreadsheet
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Explain the premise for bookkeeping and primary accounting with out studying bookkeeping
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Explain what every line merchandise of the stability sheet means and distinguish between present and noncurrent property, liabilities, and shareholders’ fairness
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Explain what every line merchandise of the earnings assertion means, together with revenues, bills, and earnings per share
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Explain every necessary line merchandise for the three sections of the assertion of money flows: working actions, investing actions, and financing actions
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Explain how the format of the working actions part differs from the opposite two actions (investing and financing)
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Test your data by finishing 28 multiple-choice questions in regards to the 2013 Facebook annual report
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Explain 4 areas that may go incorrect in a enterprise (gross sales pricing, expense management, asset administration, and asset financing)
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Explain how 4 ratios (return on fairness, revenue margin, asset turnover, and monetary leverage) can detect issues throughout the 4 potential downside areas
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Compute return on fairness, revenue margin, asset turnover, and monetary leverage ratios from actual firm’s monetary statements
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For the return on fairness ratio, drill down into its three element ratios (revenue margin, asset turnover, and monetary leverage) to pinpoint downside areas
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Start with the revenue margin ratio and drill down to compute the gross revenue share and expense share from an actual firm’s monetary statements
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Locate administration’s rationalization for year-to-year modifications in ratios from the corporate’s annual report
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Summarize the important thing causes for return on fairness variations for an actual firm from year-to-year
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Explain how 4 industries (distribution, manufacturing, service, and monetary companies differ in the way in which they generate profits
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Explain how the revenue margin, asset turnover, and monetary leverage ratios can reveal the important thing variations in the way in which that 4 industries generate profits
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“The number one problem in today’s generation and economy is the lack of financial literacy” – Alan Greenspan, Chairman of the U. S. Federal Reserve 1987 to 2006
If you’re in enterprise, you want to converse the language. No matter should you’re in gross sales, advertising, manufacturing, buying, accounting, or finance, you want to converse the language of enterprise. Perhaps you personal a small enterprise or are an entrepreneur beginning a enterprise… otherwise you want a greater job and are fascinated by going to enterprise faculty… otherwise you present authorized and consulting companies to companies. You’ll be extra credible, make higher choices, and luxuriate in extra success should you converse the language of enterprise.
The Importance of Financial Statements in Today’s World
The language of enterprise is encapsulated in monetary statements. Financial statements present a scorecard for a way a enterprise is doing. Over a sequence of years, it gives a map of the enterprise’s efficiency. Managers choose the success of their enterprise with monetary statements. Investors make clever investing choices with monetary statements. In addition, folks within the enterprise world are being held extra accountable for his or her monetary assertion practices since Enron and WorldCom. They want to know what goes into monetary statements.
Learn to Read Financial Statements, Not Prepare Them.
Just as you don’t want to perceive how to make a automotive so as to drive one, you don’t have to perceive bookkeeping to learn monetary statements. I’ve ready a course that eliminates the bookkeeping drudgery and concentrates on the top product of accounting, how to learn monetary statements, not how to put together them.
Like climbing a spiral staircase, I’ll train you ways to learn three actual firm’s monetary statements (Whole Foods, Sherwin Williams, and Facebook), beginning with the straightforward and progressing to the advanced, interspersing the statements with key accounting phrases and ideas to assist you construct experience.
Sounds good? Here is strictly what we’ll cowl:
- Read Financial Statements. What is a stability sheet, earnings assertion and assertion of money flows and the way every is completely different
- Quick Look: Read Financial Statements of Whole Foods. What are the foremost line gadgets on Whole Foods’ stability sheet, earnings assertion and assertion of money flows
- Where the numbers come from: Accrual Accounting Basics. What are some primary accounting ideas, why we are able to’t measure income with money, and why we want a separate assertion for earnings and money stream
- Deep Dive: Read Financial Statements of Sherwin Williams. What every line merchandise means on Sherwin Williams’ stability sheet, earnings assertion and assertion of money flows
- Test What you’ve got discovered: Facebook Case Study. A 28-question quiz about Facebook’s stability sheet, earnings assertion and assertion of money flows with suggestions
- What the Financial Statements Tell You Through Ratios. How to interpret an organization’s efficiency with 4 ratios: return on fairness, revenue margin, asset turnover, and monetary leverage. How to compute these ratios for Sherwin Williams and dig into their annual report for perception. How to evaluate monetary statements amongst 4 completely different industries (distribution, manufacturing, service, and monetary service)
The course accommodates 20 three-to-eight-minute-videos every adopted by a multiple-choice quiz. A case is supplied for Facebook.
The course will take 100 minutes to view the movies and one other 45 minutes to take the quizzes and do the Facebook case.
Are you prepared? Let’s do that.
Who this course is for:
- Business college students who need a massive image view of accounting by understanding the top product, monetary statements, not how the top product is created by means of bookkeeping
- Managers who need to learn and perceive monetary statements with out studying bookkeeping
- Investors who need to learn and perceive annual reviews and 10Ks
- Non-accounting/finance staff in firms who need to decide how their firm is doing with out taking an accounting course
- Accounting/finance majors shouldn’t take the course
10 reviews for How to Read Financial Statements: Build Financial Literacy.
Add a review
Original price was: $24.99.$17.99Current price is: $17.99.
Patrick Palaad –
Useful and great information but the course just wasn’t engaging for me personally. It was very text book, reading off a script and slides. But I appreciate David sharing the knowledge.
Kirby G –
The teaching is good but i feel like it could be improved upon because it sounded too robotic and rehearsed in my opinion. Also the speed of explanation was a bit fast for me. Overall still a very good lesson!
Eduardo Lozano –
Clear and comprehensive instruction all the way through the units. Quizzes and case study are great to test your knowledge and apply lessons learnt. Overall excellent course. Thank you David Johnson, Ph.D
Louis Yun Tsung Lo –
the starter course i was looking for with respect to reading & analyzing financial statements
Hannah Wiser –
bland slides, would prefer to read through than had slides read off
Alexander Mason –
Good course, the speaker is easy to understand and moves at a good speed. I just took on a commercial portfolio management role and this course has been helpful so far.
J T –
Excellent course!
Kevin Kavanaugh –
Great refresher for me, after taking some classes in college, however no previous knowledge required.
Aip Somantri,ST –
GOOD…
America Romero –
easy to understand, easy to follow instructor, provides a good foundation for understanding… Great job!