Corporate Finance: Financial Analysis and Decision-Making

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 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.

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.

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.

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.

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.

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.

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.

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.

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 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.

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.

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.

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.

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

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 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.

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

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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