When you learn to understand basic financial ratios and concepts, your decision making abilities are greatly increased.
This topic is intended to be practical and is designed for those who need to read and understand financial statements and will explain how to analyze these statements in order to make better decisions.
Financial statement analysis is used to find out what is right or wrong with a companys financial operations and why. Financial statements become so much more informative when the user analyzes the relationships of particular accounts or groups of accounts in those statements. The information is further enhanced if these analyses are compared over a series of years or to benchmark norms developed from financial statements of a representative sample of several companies in the same industry.
Overview of Cash vs. Accrual Methods of Accounting
• What Is the Difference?
• When Is Each Appropriate?
Review of the Basic Financial Statements
• Balance Sheet
• Income Statement
• Cash Flow Statement
Analyzing Financial Statements for Management Decision Making
• Ratio Analysis
• Assessing the Company's Strengths and Weaknesses
• Break-Even Analysis
Kevin R. Minkoff, CPA from Kevin R. Minkoff, CPA, LLC
IAAP ,Additional credit may be available upon request.