Description: The focus is on the basics of reading and interpreting financial statements in for-profit companies. Owners (shareholders) expect managers to operate their companies in a way that produces profit. As such, managers must know how their decisions affect the company’s profits. This course endeavors to give a student the skills to be a more effective manager. Although the focus is on tech companies, this course is intended to expose students to the financial statements of companies in many different industries. Students should be able to apply what they learn about financial statements from one industry to financial statements in other industries.
Learning Outcomes: Upon completion of this course, the student will be able to: 1. Locate financial information to analyze companies 2. Classify accounts in the income statement, balance sheet and cash flow. 3. Calculate account balances. 4. Determine profitability. 5. Understand how managers’ decisions affect the financial statements 6. Identify ways the managers can manipulate financial statements. 7. Analyze a company’s financial health using ratio analysis.