Finance Programs - EMERITUS Institute of Management

Financial Statement Analysis: Measuring & Interpreting Business Performance

The purpose of this course is to help a business professional understand the financial accounting process and to develop skills necessary to evaluate an enterprise’s financial position and it’s operating, investing, and financing activities. The first part of the course emphasizes the measurement concepts and the mechanics of moving from business transactions to the principal financial statements: Balance Sheet, Income Statement and Statement of Cash Flows. The second part introduces tools for analyzing financial statements, with an emphasis on integrating industry economic and business strategic
factors into the analysis and interpretations.

Key Frameworks include:

– Measuring Financial Position: Balance Sheet

– Measuring Operating Performance: Income Statement

– Measuring Cash Flows

– Financial Statement Analysis

– Pro-Forma Financial Statements (Budgeting, Sensitivity)

Duration and Course Fee

  • Starts 5 Jun 2017
  • 2 Months
  • 2 - 4 hours per week
  • Course Fees USD 750
 

Faculty

Daniel Wolfenzon

Stefan H. Robock Professor of Finance and Economics

Course Highlights

  • 38Interactive Lectures
  • 2Case Studies
  • 3Real World Applications
  • 1Final Exam
  • 7Discussions

SYllabus

Pre-Work

a) Pre – reads : Overview & Balance Sheet


Framework

a) Balance Sheet Basics

b) Measurement & Recognition of Assets and Liabilities

c) Recognition Principles

d) Shareholder Equity – Types

e) Double Entry Book Keeping – Overview


Application

a) Problem Set: Balance Sheet for Small Beginnings Corporation

Pre-Work:

a) Pre – reads on Income Statement


Frameworks:

a) Income Statement Basics

b) Cash versus Accrual Basis in Accounting

c) Revenue Recognition and Expense Measurement

d) Relation between Income Statement & Balance Sheet

e) Accounting Process

f) Comprehensive Example with Closing Entries: General Enterprises


Application:

a) Problem Set: Balance Sheet for Up-and-Running Corporation

Pre-Work:

a) Pre-reads on Statement of Cash Flows


Frameworks:

a) Statement of Cash Flow Basics

b) Informational Value of the Statement of Cash Flow

c) Relationship Between the Three Financial Statements

d) Preparing a Statement of Cash Flow

e) Comprehensive Example: Preparation of Statement of Cash Flow

– First Step Company

– Salene

f) Analysis of Statement of Cash Flow


Application:

a) Problem Set: Statement of Cash Flow for Aston Corporation

Pre-Work:

a) Pre-reads on Financial Statement Analysis


Frameworks:

a) Financial Statement Analysis Basics

b) Return on Assets, Return on Equity

c) Role of Financial Leverage

d) Key Risk Ratios

e) Working Capital Management


Application:

a) Prepare Case: Wal-Mart Profitability & Risk

b) Discussion: Wal-Mart Profitability & Risk

Pre-Work:

a) Pre-reads on Pro Forma Financial Statements

Frameworks:

a) Projection: Revenues & Expenses

b) Projection: Asset Structure & Capital Structure

c) Projection: Expenses, Cash Balance, and Cash Flow

d) Pro Forma Analysis

e) Budgets and Performance Targets


Application:

a) Prepare Case: Wal-Mart Pro Forma Financial Statements

a) Final Examination

BENEFITS TO THE LEARNER

Intellectual Capital

Intellectual Capital

  • Global IVY Education
  • Rigorous and experiential curriculum
  • World-renowned faculty
  • Globally Connected Classroom: Peer to Peer Learning Circles
  • Action Learning: Learning by Doing

Brand-Capital

Brand Capital

  • Certificate from EMERITUS in collaboration with Tuck At Dartmouth

Social-Capital

Social Capital

  • Build new networks through peer interaction
  • Benefit from diverse class profiles

Career-Capital

Career Capital

  • Professional Acceleration through our enriched leadership toolkit
  • Learn while you earn
  • Get noticed. Get ahead.

Duration and Course Fee

  • 2 Months
  • 2 – 4 hours per week
  • Course Fees USD 750

Phillip C. Stocken
Professor of Accounting

Duration and Course Fee

  • 2 Months
  • 2 - 4 hours per week
  • Course Fees USD 750
 

Faculty

Phillip C. Stocken

Professor of Accounting

Other Programs

Global Ivy Emeritus Institute of Management