FIN621 : Financial Statement Analysis

Course Overview

Course Synopsis

Financial Statement Analysis deals with the deep study of financial statements (Balance sheet, income statement, cash flow statement, statement of changes in owner’s equity) of companies and how the information contained in these can be used by the external and internal users. The course includes major topics of basic financial statements, method to prepare cash flow statement, analysis of cash flow statement, inventory valuation methods, ratio analysis, trend analysis, and application of ratios in evaluating the financial position of the company. This course will help you in strengthening your analytical skills and abilities.

Course Learning Outcomes

At the end of the course you should be able to learn:

  • The roles of financial reporting and financial statement analysis
  • The role of key financial statements
  • The evaluation and comparison of companies using ratio analysis, common size analysis
  • How ratios are related and how to evaluate a company using a combination of different ratios


Course Calendar

1 Accounting & Accounting Principles
2 Account and Accounting Cycle/Process
3 Rule of Debit and Credit
4 Steps in Accounting Cycle
5 Preparation of Balance Sheet and Profit & Loss Account from Simple Trial Balance
6 Recording of Business Transactions
7 Adjusting Entries and Its Types
8 Preparing Simple Financial Statement after Adjustments
9 Types of Closing Entries
Assignment
10 Preparation of Income Statement
11 Preparation of Balance Sheet
12 Introduction of Statement of Cash Flows
Quiz 1
13 Preparation of Statement of Cash Flows (Part 1)
14 Preparation of Statement of Cash Flows (Part 2)
15 Practical Examples of Statement of Cash Flows (Part 1)
Quiz 2
16 Practical Examples of Statement of Cash Flows (Part 2)
17 Practical Examples of Statement of Cash Flows (Part 3)
18 Notes to the Accounts
GDB
19 Charging Cost of Inventories to Profit and Loss Account
20 Valuation Methods of Stock of inventories
21 Methods of Depreciation
22 Types of Auditor’s Opinion (Audit of Financial Statements)
23 Annual Report generated by Business (Part 1)
24 Annual Report generated by Business (Part 2)
Mid-term exams
25 Types of Business (Part 1)
26 Types of Business (Part 2)
27 Types of Business (Part 3)
28 Types of Business (Part 4)
29 Summary (Previous Lectures) (Part 1)
30 Summary (Previous Lectures) (Part 2)
Quiz 3
31 Analysis of Income Statement and Balance Sheet
32 Common Size and Index Analysis
33 Ratios analysis
34 Activity ratios
35 Activity ratios(CONT)
36 Leverage/Debt ratios
37 Profitability Ratios
38 Profitability Ratios (Cont)
39 Cash Cycle
40 STOCKHOLDERS’ EQUITY SECTION OF THE BALANCE SHEET (Part 1)
41 STOCKHOLDERS’ EQUITY SECTION OF THE BALANCE SHEET (Part 2)
42 BALANCE SHEET INCOME STATEMENT RATIO
43 Case Study
44 Analysis of balance sheet & Income statement
45 Summary of findings
Final term exams