Center for Financial Training | Evaluated Learning Experience
Analyzing Financial Statements AFS201
59.2 hours (11 weeks).
April 2024 - Present.
Upon successful completion of this course, students will be able to: describe the purpose of the operating cycle; evaluate the risks within the major industry types; identify the reasons why companies need to borrow; identify the various borrowing arrangements used to structure a business loan; define the basic types of legal structures available to businesses; describe the general characteristic of the four stages in the business life cycle; describe the financial statement analysis process; identify and evaluate a borrower’s financial strengths, weaknesses, and uncertainties; compare and contrast the cash method and accrual method of accounting; construct a balance sheet and income statement on the accrual basis for a company; explain the components of revenue and the cost of goods sold; explain the components involved in liability and equity analysis; describe the considerations a lender needs to take into account when using ratios to evaluate financial performance; identify, calculate, and interpret liquidity, financial leverage, profitability, efficiency, and debt coverage ratios; describe the two dominant types of cash flow statements and model formats (indirect and direct methods); explain the importance of pro forma statements for projecting cash flow and loan repayment; explain the basic formats and preliminary analysis of a personal financial statements (PFS); and explain why global cash flows are critical when making credit decisions.
Instruction is facilitated by an instructor who guides students through each lesson and is available to answer questions and provide feedback on assignments. Each week, students receive an assignment over the Internet that includes reading assigned chapter(s) from the textbook. Students complete a short assignment that is forwarded electronically to instructors or posted it to the electronic class Discussion Board while also taking a self-check test. Additionally, students collaborate with other students on some assignments using electronic discussion boards, chat rooms, and e-mail. The 11-week course requires a mid-term examination and final examination which are delivered electronically. Overall grades for the class are based on student performance on the weekly assignments, mid-term examination and the final examination. Major topics include Business Sectors and Operating Cycles; Business Legal Structures and Life Cycles; How Business Financial Statements are Constructed; Income Statement Analysis; Ratio Analysis; Cash Flow Analysis; Cash Budgets and Pro Forma Statements; Personal Tax Returns and Cash Flow; Combining Business and Personal Cash Flow into Global Cash Flow. Prerequisite: Accounting ACC201.
In the lower division baccalaureate/associate degree category OR in the upper division baccalaureate degree category, 3 semester hours Business Administration, Economics, Finance, Business Management, Accounting (4/24).
