Analyzing the Balance Sheet and Income Statement

The principal goal of this course is to enable you to analyze the balance sheet and income statement.

Covered Topics

  • Explain the history and purpose the balance sheet and income statement.
  • Demonstrate how common sizing the accounts can be used to help analyze both the balance sheet and income statement.
  • Perform horizontal and vertical analysis on both the balance sheet and income statement.
  • Define the difference between assets, liabilities and owner’s equity.
  • Identify both current and non-current assets and liabilities.
  • Identify questions to ask management about selected balance sheet accounts.
  • Explain the difference between Lifo and Fifo
  • Explain the different depreciation methods used with fixed assets.
  • Provide definitions for selected balance sheet accounts such as:
    • Leases
    • Intangibles
    • Deferred Taxes
    • Treasury Stock
    • Additional paid in capital
    • Retained Earnings
    • Goodwill
    • Other comprehensive income
  • Examine the balance sheet for liquidity and leverage
  • Define the balance sheet and income statement accounts that would be considered primary and secondary sources of repayment on a loan.
  • Explain how income serves as one of the principal components of cash available for debt repayment and maintaining company viability.
  • Develop questions to ask management about revenues and expenses.
  • Explain how cost of goods sold can differ in a manufacturer versus a retailer or wholesaler
  • Explain the difference between gross profit, operating profit and net profit
  • Identify typical operating expenses.
  • Define a fixed versus a variable expense.
  • Explain other income and expenses.
  • Define extraordinary items.
  • Explain how the notes to the financial statements are used to further explain information on the balance sheet and income statement.

Who Should Attend?

Commercial lenders, credit analysts, small business lenders, middle market lenders, private bankers; loan review specialists, special assets officers, lending managers and credit officers.


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   OnDemand Recording - $215   
   CD-ROM - $245