Course curriculum

  • 1

    Introduction

    • Course introduction

    • Downloadable files
  • 2

    Constructing a Balance Sheet

    • Session objectives

    • Warm up question 1

    • The three key financial statements

    • The balance sheet: assets

    • The balance sheet: liabilities

    • The balance sheet: shareholders' equity

    • Balancing the balance sheet

    • Interactive exercise 1

    • Recording transactions

    • Issuing shares for 100 in cash

    • Taking out a four year bank loan

    • Buying a property for 80

    • Buying inventory for 60

    • Selling all inventory for 90

    • Paying salaries of 20

    • Paying interest of 3

    • Interactive exercise 2

    • Defining accounts receivable and payable

    • Buying and selling on credit

    • Interactive exercise 3

    • Vadero Inc. exercise
  • 3

    Constructing an Income Statement

    • Session objectives

    • Warm up question 2

    • Role of the income statement

    • Income statement: gross profit

    • Income statement: operating income

    • Income statement: net income

    • Creating a full income statement

    • Interactive exercise 4

    • Recording income and expenses

    • Prepayments

    • Recording expenses part 2

    • Accrued expenses

    • Interactive exercise 5

    • Luton Inc. exercise

    • Depreciation

    • The impact of depreciation

    • Different types of depreciation methods

    • Interactive exercise 6

    • Jenga Inc. exercise
  • 4

    Constructing a Cash Flow Statement

    • Downloadable files

    • Session objectives

    • Three key financial statements review

    • The role of the cash flow statement

    • The cash flow statement: operating cash flow

    • The cash flow statement: investing cash flow

    • The cash flow statement: financing cash flow

    • Profit vs cash flow

    • The idea of matching over time

    • Matching over time solution

    • Interactive exercise 7

    • PP&E and depreciation recap

    • Depreciation and the three financial statements

    • Interactive exercise 8

    • Calculating operating cash flows - direct method

    • The indirect method

    • Operating cash flows - indirect method

    • Operating cash flows example period 1

    • Period 1 solution

    • Operating cash flows example period 2

    • Period 2 solution

    • Operating cash flows example period 3

    • Period 3 solution

    • Interactive exercise 9

    • Johannes operating cash flow exercise

    • Deriving the complete cash flow statement

    • Stage one - compare the balance sheets

    • Comparing assets and liabilitites

    • Stage two - classifying the cash flows

    • Classifying working capital cash flows

    • Dealing with property, plant and equipment (PP&E)

    • Calculating net capital expenditures (capex)

    • Dealing with retained earnings

    • Interactive exercise 10

    • Preparing a cash flow statement exercise

    • Summary
  • 5

    Qualified Assessment

    • Qualified assessment

    • Share Your Feedback

    • Course Completion