Analyzing the Balance Sheet and Income Statement
Course Number: Webinar
Course Code: n/a
The principal goal of this course is to enable you to analyze the balance sheet and income statement.
-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:
Additional paid in capital
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.
Audience: Commercial lenders, credit analysts, small business lenders, middle market lenders, private bankers; loan review specialists, special assets officers, lending managers and credit officers.