Corporate Finance: Financial Analysis and Decision-Making

Explore how the balance sheet, income statement, and cash flow statement help investors assess current value and future growth by linking earnings, retained earnings, and dividends.

Dissects the balance sheet by detailing assets, liabilities, and equity within the accounting equation, and explains presenting a point-in-time snapshot with current assets and depreciation of property, plant and equipment.

Understand how the balance sheet shows assets, liabilities, and stockholders' equity at a point in time, and how it ties accrual and cash flow statements together.

Describe the income statement's time frame, its main components of revenue and expenses, and how net income increases equity; explain 'for the month ended' timing and subcategories.

Learn how the income statement measures period profitability, its multi-step format, and its links to the balance sheet, retained earnings, and cash flows under accrual and cash-basis views.

Learn how the retained earnings statement links prior period to this period under accrual accounting. Explore beginning retained earnings, net income, and dividends shaping the balance sheet and income statement.

Explore the statement of cash flows and its three sections: operating, investing, and financing, and how it reconciles accrual net income to cash, linking balance sheet and income statement.

Learn how to compute earnings per share and gross profit from net income, shares outstanding, and cost of goods sold. Practice problems and ratio analysis illustrate the process.

Learn to calculate operating income from revenue, cost of goods sold, selling and administrative expenses, and depreciation, within the accrual-based income statement and broader financial statements.

Organize income statement accounts in standard order and master components like revenue, cost of goods sold, gross profit, operating profit, taxes, and net income, including earnings per share.

Learn the structure of a multi-step income statement, from revenue to net income, including cost of goods sold, depreciation, taxes, and accrual considerations for financial analysis and ratio analysis.

Explore how to construct an income statement from revenues through net income and calculate earnings per share, including the impact of preferred and common stock, dividends, and ownership allocation.

Identify how to classify balance sheet items into current and noncurrent categories across assets, liabilities, and equity, using examples like accounts payable, prepaid expenses, and retained earnings.

Explain balance sheet and income statement classifications, distinguish current and fixed assets, current and long-term liabilities, and stockholders' equity, and build insights for financial decision making.

Explore balance sheet formats, including side-by-side and vertical layouts, and learn to classify assets, liabilities, and equity with subcategories, current assets, and the double-entry accounting concept.

Practice solving retained earnings and earnings per share problems by calculating net income from the statement of retained earnings, adjusting for dividends, and linking income statements to the balance sheet.

Explore how the cash flow statement reflects account activity under the accrual basis, using the indirect method to reconcile net income to cash flows across operating, investing, and financing activities.

Explore how depreciation affects accrual and cash flow statements, compare indirect and direct methods, and analyze tax impacts and operating cash flow differences.

Practice calculating free cash flow by subtracting capital expenditures and both common and preferred dividends from the estimated cash flow from operations in the 232 free cash flow problem.

Compute the book value per share from a balance sheet by subtracting liabilities and preferred stock from total assets to obtain equity, then divide by outstanding common shares.

Compute book value per share, earnings per share, and price-to-earnings ratio from a balance sheet and income statement, then compare market value per share to book value per share.

Create and link financial statements (the balance sheet, income statement, and statement of retained earnings), understanding double-entry connections through retained earnings, equity, and dividends.

Master earnings per share and gross profit calculations in Excel using net income, shares outstanding, and cost of goods sold, with practice formulas and formatting.

Practice building an income statement in Excel by computing revenue, cost of goods sold, gross profit, selling and admin expense, depreciation, and operating income.

Construct and visualize an income statement in the order from revenue to net income, detailing cost of goods sold, gross profit, selling and admin, depreciation, taxes, and earnings per share.

Master how to build a multi-step income statement in Excel, tracking revenue, cost of goods sold, gross profit, selling and admin, depreciation, interest, taxes, and net income.

Learn how to build a multi-step income statement in Excel, from revenue to net income and earnings per share, including format, subtotals, and the calculation steps.

Practice building three income statements in Excel, solving for unknown depreciation, and applying tax and interest calculations with goal seek.

Practice your balance sheet classifications in Excel by distinguishing current and noncurrent assets, liabilities, and equity, with examples like accounts payable, inventory, and marketable securities.

Explore Excel-based classification of balance sheet and income statement items, identifying assets, liabilities, and equity, including current and long-term subcategories and examples like accounts receivable and notes payable.

Format balance sheets in Excel by organizing assets, liabilities, and equity into current and long-term categories, applying multiple layouts, sums, and indenting for clear financial statements.

Learners practice an Excel-based problem to compute the increase in retained earnings and earnings per share by deriving earnings available to common stockholders and dividing by shares.

Practice solving a retained earnings problem in Excel by backing into net income from beginning and ending retained earnings and dividends, then calculate earnings per share.

Explore an excel based practice problem to calculate earnings per share and price-to-earnings ratio, compare year-over-year stock price and EPS changes, and analyze market versus financial statement relationships.

Learn to convert accrual income to cash flow using the cash flow statement, focusing on accounts receivable and payable, depreciation, and the indirect method.

Explore how depreciation affects income statements and cash flow statements by analyzing an Excel practice problem comparing two scenarios A and B under accrual and cash-basis reasoning.

Explore free cash flow by calculating operating cash flows, subtracting capital expenditures and dividends (common and preferred), and using sum functions in excel to reveal available funds.

Learn to compute book value per share from a balance sheet in Excel by deriving equity (assets minus liabilities), subtracting preferred stock, and dividing by common shares outstanding.

Calculate book value per share, earnings per share, and price to earnings ratio from a balance sheet in Excel, and compare market value per share to book value per share.

Develop proficiency in calculating book value per share, earnings per share, and price-earnings ratio using an Excel balance-sheet model to compare market value per share with book value per share.

Build and link income statement, statement of retained earnings, and balance sheet in Excel using a trial balance to illustrate accrual to cash reformatting and the creation of financial statements.

learn to construct a statement of cash flows in excel using the indirect method, linking operating, investing, and financing activities to balance sheet changes.

Learn how to analyze financial statements using ratios to evaluate profitability, liquidity, asset utilization, and debt position, compare with peers, and inform investment, lending, and management decisions.

Explore the DuPont system of analysis to decompose return on equity into profit margin, asset turnover, and financial leverage, and connect ROIC to ROA and equity.

Learn how to calculate profit margin percent from net income and revenue, compare divisions using ratios, and interpret results for performance and decision making.

Compute net income from estimated revenue using profit margin, then determine ROI against a 500,000 capital investment, and compare projects.

Explore how to compute return on assets and return on investment by linking total asset turnover and profit margin, using net income and total assets in a practice problem.

a practice problem analyzes return on assets, total asset turnover, and profit margin, using assets of 8.41 million and sales of 28.594 million to back into net income.

Compare two-year profit margins using an income statement, calculate margins from revenue and expenses, and analyze changes in net income and cost of goods sold.

Practice expense to sales ratio analysis using income statement data, comparing cost of goods sold, selling and administrative expenses, and interest to sales across two years.

practice problem walks through calculating ROA, ROE, and asset turnover, derives equity from assets and liabilities, and back-calculates sales to compute profit margin.

Examine how total asset turnover connects with return on assets and gross profit margin, then derive return on equity from debt and equity to assets in practice problems.

Explore how to compute return on stockholders equity from profit margin and total asset turnover in a corporate finance practice problem, with attention to data interpretation and rounding in Excel.

Compare two companies using ratio analysis to evaluate return on equity, profit margin, return on assets, asset turnover, and debt to assets, highlighting how leverage and efficiency affect relative performance.

Compute the average accounts receivable collection period from credit sales and daily credit sales, using accounts receivable turnover to reveal a 60-day collection cycle and how to shorten it.

Practice problem analyzes two-year turnover ratio calculations for accounts receivable, inventory, fixed assets, and total assets, using sales and balance sheet data to interpret efficiency changes.

Practice solving multiple ratios calculations in corporate finance, including current and quick ratios, debt to total assets, asset turnover, average daily credit sales, accounts receivable turnover, and average collection period.

Analyze a practice problem on times interest earned and fixed charge coverage, using an income statement to separate fixed and variable costs and compute coverage ratios.

Examine asset turnover and return on equity via a practice problem across X0–X3, compute return on assets from net income over average assets, and analyze changes in assets and equity.

Analyze asset turnover and debt-to-asset ratios across three years, compare results to industry standards and prior periods, and interpret trends to assess leverage and efficiency.

Explore how to compare divisions within a single company using net profit margin and return on assets, analyzing divisions A, B, and C through return on sales and asset utilization.

Reverse engineer the current assets portion of the balance sheet from ratios. Use the current ratio, inventory turnover, and average collection period to compute cash, accounts receivable, and inventory.

Back into a balance sheet using ratios, solving for unknown assets and liabilities. Total assets turnover, cash to total assets, current ratio, and debt to total assets—note rounding.

learn to use ratios to create account balances. apply asset turnover, current ratio, debt-to-asset, and receivable turnover to derive accounts receivable and current and total assets.

Compute and interpret profitability, asset utilization, liquidity, and debt ratios from the balance sheet and income statement to complete a comprehensive ratio analysis.

Compare Company A and Company B through profitability, asset utilization, liquidity, and debt ratios, using the balance sheet and income statement.

Conduct a side-by-side comprehensive ratio analysis of two companies, comparing profitability, asset utilization, liquidity, and debt utilization to assess efficiency, risk, and financial health.

Calculate the profit margin percent in Excel by dividing net income by sales and formatting as a percentage. Use ratio analysis to benchmark efficiency across companies.

Apply excel to compute return on investment (roi) and roic, using a 500,000 upfront cost, 2,040,000 revenue, and a 4% profit margin to derive net income.

Practice problem in Excel to calculate return on assets, total asset turnover, and profit margin, then determine return on investment for a new store using Goal Seek and algebra.

Learn to calculate return on investment, total asset turnover, and profit margin in Excel by backing into sales and net income from assets and ROI, using goal seek and algebra.

Learn to build an income statement in Excel and compute the two-year profit margin using sales, net income, and cost of goods sold, with input-based projections.

Explore Excel-based expense-to-sales ratio analysis on a two-year income statement, computing cost of goods sold, selling and admin, and interest as percentages of sales to guide decision making.

Learn to compute return on assets, return on equity, asset turnover, and profit margin in Excel by linking income statement figures to balance sheet data and deriving sales.

Explore a corporate finance excel practice problem to compute total asset turnover and return on equity using gross profit margin and return on assets, including debt-to-asset and equity relationships.

Explore an Excel-based corporate finance problem to calculate total asset turnover, profit margin, and return on stockholders' equity from sales and stockholders' equity, using what-if analysis.

Compare two companies in excel by calculating return on equity and other ratios. Analyze profit margin, asset turnover, roa, and debt to total assets to explain performance differences.

Learn to calculate the average accounts receivable collection period in Excel, using credit sales and AR turnover to express days outstanding, with two methods.

Learn to compute two-year turnover ratios in Excel—accounts receivable, inventory, fixed asset, and total asset turnover—using sales and balance sheet data to compare years.

Explore practical Excel calculations of liquidity and efficiency ratios, including current and quick ratios, the debt to total assets, asset turnover, and average daily credit sales and collection period.

Explore times interest earned and fixed charge coverage calculations using a multi-step income statement in Excel, deriving income before interest and taxes and identifying fixed charges.

Explore an Excel-based practice analyzing asset turnover and return on equity through trend analysis across multiple periods using income statement and balance sheet data.

Explore asset turnover and debt-to-asset analysis in an Excel-based practice, comparing return on assets across periods and to industry standard to reveal trends and performance.

Compare divisions or subsidiaries within a company by calculating net profit margin and return on assets in Excel, using sales, net income, and assets to analyze efficiency.

Back-calculate the current assets of the balance sheet from ratios using Excel, deriving cash, accounts receivable, and inventory via current ratio, inventory turnover, and average collection period.

Use ratios to create and deconstruct the balance sheet in Excel, turning given ratios into asset, liability, and equity balances for current and projected periods.

Practice solving accounting balance problems in Excel by using asset turnover, current ratio, and debt to assets ratios to back into accounts receivable, current assets, and fixed assets.

practice comprehensive ratio analysis in excel using balance sheet and income statement data, calculating profitability, liquidity, debt, and asset utilization ratios to inform corporate finance decisions.

Explore a two-company Excel practice on a comprehensive ratio analysis using balance sheet and income statement data. Compare profitability, asset utilization, liquidity, and debt ratios for companies A and B.

Compute profitability, asset utilization, liquidity, and debt ratios in Excel for company B, compare with company A, and interpret leverage, efficiency, and turnover metrics.

Explore forecasting objectives and how to build pro forma income statements, cash flows, and pro forma balance sheets from sales projections, production plans, and capital budgets.

Create pro forma income statements from sales projections and production plans, estimating cost of goods sold with materials, labor, and overhead, and link to the balance sheet.

Develop a cash budget by forecasting cash inflows from sales and accounts receivable, and cash outflows for inventory, accounts payable, and capital expenditures, linking to the balance sheet.

Learn to build a pro forma balance sheet from sales projections, production budget, and the income budget and cash budget to project ending equity and assets.

Explore the percent of sales method to project balance sheet accounts, assess funding needs, and understand how current assets, liabilities, and equity respond to sales growth and capacity.

Compute net sales by starting from prior year 4,000 units at $83, applying a 25 percent increase in units and a 21 percent price rise, then subtract 8 percent returns.

Learn to compute the required production by combining projected unit sales with a desired ending inventory, then subtract beginning inventory, using just-in-time considerations.

Explore how fifo and lifo affect cost of goods sold and ending inventory, and how rising prices influence net income and taxes in one note practice problem.

Learn to calculate ending inventory and cost of goods sold under LIFO and FIFO, compare their effects on gross profit and assets amid rising or falling prices.

Learn to build a cash receipts schedule from credit sales, track accounts receivable collections by month, and project future cash inflows using monthly collection percentages and September–December data.

Examine the schedule of cash receipts across multiple scenarios, using sales projections to model collections: 35% in the month of sale, 25% next month, 30% two months after, 10% uncollectible.

Explore the schedule of cash payments in corporate finance, detailing how materials purchases flow through accounts payable and are paid in subsequent months, with emphasis on cash outflows and timing.

Analyze a more complex schedule of cash payments, linking next-month sales to material purchases, accounts payable timing, and cash outflows for labor, overhead, interest, and commissions.

Develop and analyze a production schedule and the corresponding schedule of cash payments, calculating ending inventories, units produced, materials and labor costs, and accounts payable timing.

Learn to prepare a cash receipts schedule and budget for November–December using 30% cash sales, 70% credit sales, and 40/60 collections, with a 5,000 minimum balance and line of credit.

Guides building a cash receipts schedule, cash payments schedule, and cash budget for June–September, covering cash and credit collections, payables, labor, taxes, dividends, interest, and a $300,000 capital outlay.

Apply the required new fund formula for current assets and current liabilities changes relative to sales to assess external financing needs using the percent of sales method.

Explore sales projections in Excel by evaluating three scenarios of units and prices, and compute expected value by weighting outcomes with probabilities.

Apply Excel practice to estimate net sales by projecting prior year sales, adjusting unit sales and unit price across scenarios, accounting for returns, and calculating net sales using formulas.

Master corporate finance production planning in Excel by computing units to be produced from projected sales, beginning and ending inventory, using dynamic formulas across practice problems.

Examine a practice Excel problem to calculate cost of goods sold under the fifo flow assumption, using beginning inventory, current production, and sales to determine cogs and ending inventory.

Explore how to calculate cost of goods sold under FIFO and LIFO in Excel, using beginning inventory, production, sales, and ending inventory to compare financial statement effects.

Explore how to calculate ending inventory and cost of goods sold using FIFO and LIFO in Excel, including materials, labor, and overhead costs, and assess the impact on gross profit.

Analyze a schedule of cash receipts in Excel by projecting fourth-quarter credit sales and collections, using absolute references and autofill to model accounts receivable and cash flow.

Practice corporate finance cash receipts scheduling in Excel, using multiple scenarios to model sales collections, accounts receivable balances, and cash receipts with absolute references and autofill.

Explore a practical Excel problem on the schedule of cash payments for corporate finance, detailing how material purchases, accounts payable, and labor costs drive monthly cash flows.

Create an Excel cash payments schedule with staggered purchases paid via accounts payable, using percent of next month’s sales, plus labor, fixed overhead, interest, and June commissions.

Analyze a corporate finance excel practice problem to build a production schedule and a cash payments schedule for March–May, using ending inventory rules, unit costs, and monthly payments.

Explore building a cash receipts schedule and cash budget in Excel, calculating cash flows, beginning and ending balances, and managing a five thousand minimum balance with a line of credit.

Develop an Excel cash budget for January–March, detailing cash receipts and payments schedules, credit collection timing, line of credit, and the minimum cash balance.

Build an Excel cash receipts, cash payments, and cash budget model featuring credit sales timing, collections, minimum and maximum cash balances, and a September 300,000 capital outlay.

Apply the required new funds formula in Excel to project assets, liabilities, and equity changes as sales grow, determining net funds needed.

Apply the required new fund formula in Excel to project current asset and liability changes relative to sales, using profit margin and payout ratio to determine funding needs.