Financial Accounting
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Financial Accounting
This course is part of Data & Finance for the future Specialization
Instructor: Felipe Garrán
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What you'll learn
Interpret the main financial statements and reports
Understand business performance across time
Evaluate company results and peer comparison
Use financial ratios to diagnose the company's economic status
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There are 5 modules in this course
This course presents an introduction to financial statement analysis and its usage when assessing business performance. The first part of the course will focus on understanding the most important financial statements, namely, the balance sheet, the income statement, and the statement of cash flows. We will then focus on how we can understand the financial health and performance of the company by examining a number of important financial ratios that are derived from the financial statements of the company. Finally, we will be able to understand business performance across years comparing main results and indicators extracted from financial statements. Lectures on concepts will be supplemented with numerical examples and suggested readings.
In week1, we will cover an introduction to the balance sheet as business’ picture, focusing on accounting and its users and how a balance sheet is built. Next, we go on to understand the income and cash flow statements as business movies focusing on their principal accounts. Finally, we integrate the 4 statements using a restaurant as example.
What's included
8 videos5 readings5 assignments1 plugin
8 videos•Total 88 minutes
- Accounting and its users•9 minutes
- Building the balance sheet•15 minutes
- The income statement•14 minutes
- Non-recurring items in the income statement•7 minutes
- Profit is not cash•10 minutes
- Cash from operations•7 minutes
- Non-operating cash•9 minutes
- A month in a pizzeria•17 minutes
5 readings•Total 110 minutes
- Course Syllabus•10 minutes
- Slide deck for entire course•10 minutes
- Readings for the entire course•10 minutes
- Assets and Balance Sheet•40 minutes
- Expenses and Income Statement•40 minutes
5 assignments•Total 110 minutes
- Practice quiz: balance sheet•5 minutes
- Practice quiz: the income statement•20 minutes
- Practice quiz: cashflow statement•10 minutes
- Practice quiz: integrated analysis•15 minutes
- Graded quiz: Balance sheet, Income statement, and Cashflow statement•60 minutes
1 plugin•Total 10 minutes
- Classify each inflow and outflow (wait for page to load)•10 minutes
In week 2, we will cover: company’s financial condition and performance across time (horizontal analysis) and to a base amount (vertical analysis); margin – a profitability measure; EBIT and EBITDA (the income provided by the company’s business, the operating result); net income (the results for the company's shareholders); tax shield.
What's included
8 videos4 assignments
8 videos•Total 33 minutes
- Vertical analysis•3 minutes
- Horizontal analysis•4 minutes
- Margin analysis•3 minutes
- For each profit one margin•6 minutes
- Operating result•4 minutes
- Adjusted EBITDA•5 minutes
- From operating to net income•3 minutes
- Taxes and tax shield•5 minutes
4 assignments•Total 110 minutes
- Practice quiz: vertical and horizontal analysis•30 minutes
- Practice quiz: Margin analysis•5 minutes
- Practice quiz: EBITDA and nonrecurring items•15 minutes
- Graded quiz: Income Statement Analysis•60 minutes
In week 3 we will better understand the balance sheet and important analyses we can perform with its data: liquidity ratios; receivables and inventories ratios; operational and financial liabilities; working capital; and cash cycle.
What's included
7 videos4 assignments
7 videos•Total 106 minutes
- Liquidity Ratios•10 minutes
- Receivables and Inventories Ratios•8 minutes
- Operational and Financial Liabilities•8 minutes
- Working Cycle•3 minutes
- Working Capital Financing•6 minutes
- Cash Cycle•4 minutes
- Recording of Financial Accounting Live Session on 22-03-25 12:03:04 [22:20]•67 minutes
4 assignments•Total 105 minutes
- Practice quiz: Short term assets•20 minutes
- Practice quiz: Liabilities•10 minutes
- Practice quiz: Working capital analysis•15 minutes
- Graded quiz: Balance Sheet Analysis•60 minutes
In week 4 we will discuss cash flow analysis, covering: cash flow from operations; cash flow from investing; cash flow from financing.
What's included
6 videos4 assignments1 plugin
6 videos•Total 90 minutes
- Operations and its Cash•4 minutes
- Diving Deep•10 minutes
- Allocating Cash is Crucial•5 minutes
- More Liability Might Mean More Cash•5 minutes
- Reconciling Cash•3 minutes
- Recording of Live Session - Financial Accouting on 22-11-21 12:12:47 [02:41]•63 minutes
4 assignments•Total 90 minutes
- Practice quiz: Cash flow from operations•10 minutes
- Practice quiz: Cash flow from investing•10 minutes
- Practice quiz: Cash flow from financing•10 minutes
- Graded quiz: Cash Flow Analysis•60 minutes
1 plugin•Total 10 minutes
- Generation and consumption of cash (wait for page to load•10 minutes
In week 5 we will put everything together and perform a step-by-step analysis.
What's included
9 videos2 readings
9 videos•Total 118 minutes
- Getting Data•4 minutes
- Historical Performance•9 minutes
- Vertical Analysis•12 minutes
- Liquidity and Activity Ratios•4 minutes
- Mapping Cash Generation•5 minutes
- Inside each Pillar•6 minutes
- Measuring Return Over Capital•5 minutes
- ROIC and ROE•6 minutes
- Recording of Financial Accounting Live Session on 22-04-08 12:05:36 [07:04]•67 minutes
2 readings•Total 55 minutes
- Excel spreadsheet for week 5•10 minutes
- Financial Accounting Staff-Graded Assignment Instructions•45 minutes
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