Webinar: Analyzing the Balance Sheet and Income Statement

Tuesday, February 12, 2019

10:00am  to  11:30pm

Covered Topics

  • 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:
    • Leases
    • Intangibles
    • Deferred Taxes
    • Treasury Stock
    • Additional paid in capital
    • Retained Earnings
    • Goodwill
    • 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.