Reading Corporate Financial Statements

Introduction

• The power of financial statements

1. The Basics of Financial Statement Preparation

• What stories do financial statements tell?
• The role of the accounting cycle
• Understanding year-end close
• Finding financial statements for publicly traded companies
• Challenge: Finding financial statements
• Solution: Finding financial statements

2. The Basics of Income Statement Preparation

• Recognizing revenue and understanding the revenue recognition principle
• Recording expenses using the matching principle
• Challenge: Working with the income statement
• Solution: Working with the income statement

3. The Basics of Balance Sheet Preparation

• The accounting equation and the assets section of the balance sheet
• The accounting equation and the liabilities section of the balance sheet
• The accounting equation and the equity section of the balance sheet
• Challenge: Working with the balance sheet
• Solution: Working with the balance sheet

4. The Basics of Statement of Cash Flow Preparation

• The impact of operating activities on the cash flow statement
• The impact of investing activities on the cash flow statement
• The impact of financing activities on the cash flow statement
• Challenge: Working with the statement of cash flow
• Solution: Working with the statement of cash flow

5. The Basics of Statement of Stockholders' Equity Preparation

• Understanding the statement of stockholder's equity
• Challenge: Working with the statement of stockholders' equity
• Solution: Working with the statement of stockholders' equity

Conclusion

• Your next steps in creating financial statements