Financial Statement Analysis
July 14-16, 2008

Financial Statement Analysis LogoWHY YOU NEED TO TAKE THIS COURSE:
Navigating the world of finance — cash flows, balance sheets, return on assets, and the need for external financing — can be daunting. And if you face decisions that may affect your company’s future financial results on a day-to-day basis, this course offers you clarity and a deeper understanding of financial analysis.

The primary objective of the course is to teach the fundamentals of financial statement analysis to on-the-rise middle managers with a view towards using this tool in carrying out the strategies of your firm. The course is
designed to take the mystery out of accounting financial statements and the financial planning process. The techniques you’ll learn will be useful for a single project or when applied to your entire firm’s strategies.

WHAT YOU WILL LEARN:
Financial Statement Analysis will teach you the fundamentals of financial planning and analysis of for-profit business organizations. Financial statement structure and analysis will be discussed, with the objective of using this analysis to create a financial model for a business. The model, which is built around the Operating/
Investing/Financing activities of a business, will be utilized to predict the financial results of a firm's strategic plans and objectives.

The three primary financial statements (the balance sheet, the income statement, and the statement of cash flows) will be introduced and discussed to determine where they fit in the financial planning model of a business. The structure and meaning of each of the three financial statements will be thoroughly covered. The
course material and delivery assumes no prior accounting background or courses.

Any prior experience or use of financial statements, budgets, etc., however, will prove to be useful. You are asked to bring a laptop computer, with Excel, and two years worth of annual reports or 10/K (nothing proprietary) from your company to use in the class work sessions. The real world results from different companies and different industries will illustrate the principles and tools taught in the course.

COURSE INSTRUCTOR:
Dr. John H. White is currently Clinical Professor of Accounting, Daniels College of Business, University of Denver. He was previously the Associate Dean and Professor of Accounting and Economics at Colorado Christian University where he also served for three years as the University's Vice President of Finance and
Information Systems and Chief Financial Officer. He also previously taught accounting and economics at the Colorado School of Mines.

He holds a B.S. and M.Eng in Metallurgical Engineering and a Ph.D. in Mineral Economics, all from the Colorado School of Mines, as well as a MBA with accounting emphasis from the University of Denver. He is a Certified Public Accountant and Certified Information Systems Auditor and held a Professional Engineer's license for 27 years. He owned and operated several businesses including a multi-state CPA firm, a computer sales and service firm, and a computer software firm. He also consults frequently in his areas of financial expertise.

MAIN TOPICS:

The Model: Operating/Investing/Financing

  • Objectives of a for-profit business firm
  • Basic microeconomic theory and model applied to business operations
  • Operating: The most well known and understood activity of a business
  • Investing and financing: Activities that are less well known, but necessary to allow a business to operate and be profitable
  • The cash flow model of a business: Give cash vs. get cash business transactions
  • The definition of a successful business

The income statement: AKA the statement of operations

  • The equation of the income statement
  • The structure and elements of the income statement
  • Accounting principle: Revenue recognition
  • Accounting principle: Matching expenses with revenues
  • Accounting principle: Cash vs. accrual accounting reports
  • Defining profitability
  • Three ways to increase the profit of a firm
  • Financial ratios using only income statement numbers

The balance sheet: AKA the statement of condition

  • The equation, structure and elements of the balance sheet
  • The Left Hand Side: Four general categories of assets
  • The Right Hand Side (1): Two general categories of liabilities
  • The Right Hand Side (2): Two general categories of owners' equity
  • Financial ratios using only balance sheet numbers
  • Which financial statement is more important: The balance sheet or the income statement?
  • Class exercises of interpreting and recording typical financial and accounting transactions (events) in the accounting records (“the books”) and then preparing balance sheets and income statements

Special balance sheet topics

  • Mining and manufacturing inventories
  • Long-term operating assets, depreciation, depletion, amortization, & impairments
  • Leases: Operating vs. capital
  • Accumulated other comprehensive income

Special income statement topics

  • Operating vs. non-operating expenses
  • Sale of property, plant and equipment
  • Discontinued operations
  • Extraordinary items
  • Income taxes: Current and deferred
  • Other comprehensive income

The statement of cash flows (SCF)

  • Cash is king: Profitable or unprofitable, if you have cash, you are still in business
  • Financial transactions that provide cash
  • Financial transactions that use cash
  • In class example & exercise of creating a simple SCF from various financial data
  • Direct vs. Indirect format of the SCF
  • Cash flows vs. income flows and how to reconcile the two

LOCATION:
The course will be held at the Colorado School of Mines in Golden, Colorado. Class will meet between 8 a.m. and 5 p.m. daily. The course may be offered online. Contact the SPACE Office for details.

REGISTRATION FEE:
The registration fee for this course is $1,495 (US) if received by June 15. Fee is $1,595 (US) after that date. Fee includes a copy of course notes and PowerPoint slides. Enrollment applications will be accepted in the order received.

The sponsor reserves the right to cancel the course and return registration fees if enrollment is insufficient. Substitutions may be made at any time without penalty.

Cancellations will be charged a $250 service fee. No refunds will be made to participants who fail to substitute or cancel at least 5 working days before the start of the course. 2 CEU's are available for this course upon request.

You may register for this course by clicking here: Register

CREDIT:
Colorado School of Mines will award 2 Continuing Education Units (CEU's) upon completion of this course.

ACCOMMODATIONS, TRAVEL, AND MEALS:
Registrants are responsible for their own lodging, food, and travel arrangements. Click here for accommodations information and for travel information.

INFORMATION:
 For technical information about the course, contact Dr. John H. White at 303/871-2031. E-mail: john.white@du.edu. For information about registraton contact:

Office of Special Programs and Continuing Education
Colorado School of Mines
Golden, CO 80401
Phone: 303/273-3321
Fax: 303/273-3314
E-mail: space@mines.edu

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