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Describe how being able to understand and speak the Language of Accounting and Finance will allow an employee to be a more valuable employee.
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State the difference between the OpEx Budget and the CapEx Budget.
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List the four categories of expenses found on an Income Statement.
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Describe what determines a company’s Revenue and its Expenses.
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Explain the difference between Cost of Goods Sold and Operating Expenses.
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Define Assets, Liabilities and Equity and provide examples for each category.
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Explain the difference between a Current and a Non-Current Asset as well as the difference between a Current and a Non-Current Liability.
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Explain how the Income Statement is linked to the Balance Sheet.
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State the equation that governs the Balance Sheet.
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Given a business transaction, explain how it would change the Balance Sheet.
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Name the three Sections on the Cash Flow Statement.
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Identify sources and uses of cash on the Cash Flow Statement.
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Describe how the Income Statement, Balance Sheet and Cash Flow Statement are linked.
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Find the common line items on your company’s Income Statement, Balance Sheet and Cash Flow Statement.
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Calculate key financial ratios using your company’s annual report.
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Given a company’s Revenue and Expenses, calculate its Gross Profit, Gross Margin (%), Operating Profit, Operating Margin (%), Net Income and Net Margin (%).
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Explain the difference between “marking-up” a product by 30% and “pricing” a product so that its Gross Margin is 30%.
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Describe what an Inventory Turns Ratio of 4.0 means.
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Explain why ROE is such an important ratio.
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Explain the difference between a variable and a fixed expense.
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Given a company’s Fixed Expenses and its Contribution Margin per product, calculate its Break-Even point.
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Given a business scenario, use financial information to make and justify the best decision for the business scenario.
