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This is part two of a four part Back to Basics in Corporate Finance series. This module focuses on two of the three common financial tools used in business - the balance sheet and the cash flow statement.  These two statements, used in combination, measure your worth by showing what you own, what you owe, and reconciling the changes in cash as it flows in and out of the business. Whereas managers in a business look mostly at the income statement, owners, bankers and investors prefer to look more closely at these statements when assessing the health of an organization.

Expect to learn:

  • What the return-on-equity, current, and the debt-to-equity ratios tell us.
  • Why you should join bankers and investors in the practice of looking closely at the balance sheet and cash flow statement.
  • What free cash flow is, and why it’s important.
  • What the three sections of the cash flow statement are, and what they show us.
  • What the difference is between equity and profitability, and why you should care.

Enhance your financial knowledge through examples and exercises using real numbers from well-known companies, as well as learning about how the dot-com bubble burst. Walk through financial statements and calculate ratios to understand the story the numbers tell us. 

Course Series

This course is included in the following series:

4 CoursesFinancial Intelligence

  1. Module One in Financial Intelligence: The Income Statement – Back to Basics Series
  2. Module Two in Financial Intelligence: The Balance Sheet and Cash Flow Statements – Back to Basics Series
  3. Module Three in Financial Intelligence: The 4 Financial Ratio Classifications – Back to Basics Series
  4. Module Four in Financial Intelligence: Cash vs. Profit and Working Capital Strategies – Back to Basics Series

Learning Objectives

  • Identify the different sections of the financial statements
  • Discover if your company has enough money to invest and continue to grow
  • Explore the ratios to see if your company is using their resources effectively

 

 

Last updated/reviewed: November 18, 2017

14 Reviews (45 ratings)Reviews

4
Member's Profile
Excellent presentation and a good review or overview of the balance sheet, income statement, and cash flow statement (depending on one's level of understanding of accounting). The final exam needs to have more questions based on concepts rather than examples discussed in one of the chapters.
5
Member's Profile
Great instructor and narrative and a good high-level overview of the various financial statements and how they are related. However 2 of 5 exam questions were specific to a company's ratios...that doesn't prove one's understanding of the concepts as much as their memory.
5
Member's Profile
Clear and simple with great examples. The course provides the general user of financial statements the basics. Recommend for all business users.
5
Member's Profile
Very good. Like the finance spin and the partical real life application. Not the typical lecture type course. Engaging. Thanks,
5
Anonymous Author
An excellent review because was kept simple and practical. Key points stressed an practical analysis reinforced.
4
Anonymous Author
The presentation of this course is great! I found the instructor to be upbeat and easy to understand.
5
Anonymous Author
Excellent review for accountants who want to brush up on basic ratios used in financial analysis
3
Anonymous Author
The Balance Sheet/Cash Flow video was constantly stopping and starting again.
5
Member's Profile
I really enjoy Joe Knight's teaching style and anecdotes.
5
Member's Profile
Presenter is excellent
5
Anonymous Author
A bit basic for cpe
5
Anonymous Author
Great Job!!
4
Member's Profile
Useful
5
Anonymous Author
Great

Prerequisites

Course Complexity: Foundational

No Advanced Preparation or Prerequisites are needed for this course. However, it is recommended to take the other courses in the series prior to completing this one.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  8:10Assets, Liabilities, and Equity
  7:36Balance Sheet Analysis
  12:03The Cashflow Statement
SUPPORTING MATERIALS
  PDFWorkbook: The Balance Sheet & Cash Flow Statements
  PDFThe Balance Sheet & Cash Flow Statements Study Guide/Glossary
REVIEW & TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM