Financial Statement Analysis: Better Decisions by the Numbers (Currently Unavailable)

Author: Linda Keith

CPE Credit:  2 hours for CPAs

Financial statements are useless if the users of the statements cannot make better decisions. Yet many financial statements land in a file somewhere and that is the end of it. Adding analysis of ratios, trends and comparisons allow:

  • CPAs in public practice to help their clients toward greater business success
  • CPAs in industry to gain more actionable knowledge
  • CPAs in lending to better assess borrower credit-worthiness

  • This course sets the foundation for all financial statement trend and comparative analysis. Linda Keith is an experienced CPA, business owner, bank consultant and lending trainer. She describes, calculates and interprets 12 indicators of liquidity, asset utilization, leverage and profitability. Her no-nonsense approach and sometimes contrarian point of view will help you understand, and better explain, the value of looking beyond the numbers. Who knew 'more liquid' might not always be better?

    Publication Date: July 2013

    Designed For
    Practicing CPAs, CPAs in industry responsible for preparing, explaining or understanding financial statements of their organization, Business Lenders

    Topics Covered

    • Approach to Analysis
    • How to 'Read' Financial Statements
    • Using Trend and Comparison to assess financial performance
    • Understand why higher (or lower) is not always better (or worse)

    Learning Objectives

    • Identify the role of liquidity, asset utilization, leverage and profitability in the successful management of a business
    • Recognize analysis ratios/percentages
    • Recognize sources of industry averages
    • Calculate each without aid of software
    • Recognize the limitations of industry ratios and percentages as they relate to a specific business
    • Identify critical information when you are providing guidance

    Level
    Intermediate

    Instructional Method
    Self-Study

    NASBA Field of Study
    Accounting (2 hours)

    Program Prerequisites
    A basic understanding of financial statements. We recommend taking Financial Statement Analysis: Balance Sheets, Income Statements and Cash Flow webcast.

    Advance Preparation
    None

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