Description
Reviews terms and steps associated with analyzing financial statements. Explains how tax returns report income and expenses from another perspective. Examines the computation and meaning of four categories of financial ratios and how ratios are used to spot significant trends.
What You’ll Learn
After successfully completing this course, you will be able to:
- Define financial statement analysis and explain its importance in the small business lending process
- List the basic steps of financial statement analysis and the purpose of each step
- Analyze an income statement and balance sheet
- Explain how tax returns are used in the lending process
- Calculate and interpret key ratios
- Perform a simple cash flow analysis
