Level 1 CFA® Exam Prep Bootcamp (Part 2/2)

Learn to use the Texas Instruments Battoo Plus financial calculator, master setup, basic calculations, time value of money, cash flows, statistics, depreciation, and break-even analysis.

Learn to use the Texas Instruments Battoo Plus calculator to compute mean, variance, and standard deviation for one- and two-variable data, including regression, covariance, and correlation.

Explore sources for financial statement analysis, including annual reports, interim filings, SEC forms, proxy statements, investor relations pages, and earnings guidance.

Explore how financial reporting standards secure comparability across firms amid hyperinflation, through IAS 29, and how the conceptual framework guides judgments and valuation.

Explore the differences and convergence between IFRS and U.S. GAAP, and learn how analysts monitor standards, disclosures, and updates to compare financial statements globally.

Explore the statement of comprehensive income and income statement components, including revenue and cost recognition and unusual items. Learn to compute earnings per share and convert to common size statements.

Explore the accrual-based revenue recognition framework, including the five-step model—identify contracts, define performance obligations, set transaction price, allocate it, and recognize revenue as obligations are satisfied.

Apply the five step revenue recognition model to a real world example with Iron Master Ltd and Crossville Ltd, allocating price to two performance obligations and recognizing revenue at delivery.

Apply the matching principle to recognize expenses in the same period as related revenue, distinguishing product costs such as inventory and cost of goods sold from periodic expenses incurred.

Identify non-recurring items and discontinued operations to explain profit deviations, classify unusual or infrequent events, and apply retrospective restatements for policy changes and errors.

Learn how earnings per share (EPS) is calculated for simple and complex capital structures, including basic and diluted EPS, and how dilutive securities affect ownership.

Understand other comprehensive income and total comprehensive income, equal to net income plus other comprehensive income, including foreign currency translation, pension adjustments, and unrealized gains on hedges and financial assets.

Explore how a balance sheet shows what a company owns and owes at a specific date. Understand that assets equal liabilities plus equity and differentiate current and non-current items.

Explore liquidity-based and classified balance sheet formats, define liquidity, and compare how assets and liabilities are ordered by cash convertibility for banks and production firms.

Explore current assets, including cash and cash equivalents, accounts receivable, inventory, marketable securities, and prepaid expenses, with emphasis on IFRS valuation, cost, and net realizable value.

Learn how shareholders' equity is structured on the balance sheet, including common and preferred shares, treasury stock, retained earnings, and other comprehensive income.

Convert balance sheet items to common size by dividing by total assets to enable time and industry comparisons. Assess liquidity, debt burden, and financing sources, including acquisitions and goodwill.

Compare cash flow statements under IFRS and US GAAP, focusing on operating, investing, and financing classifications. IFRS allows flexible classification for interest, dividends, and taxes, unlike GAAP.

Compare direct and indirect methods for cash flows from operations, noting net income adjustments and non-cash items; both yield the same net operating cash flow.

convert indirect to direct cash flow in excel by building a pro forma, deriving cash receipts from customers and payments to suppliers using balance sheet changes, receivables, inventory, and payables.

Explore free cash flow indicators, including free cash flow to the firm and to equity, and learn formulas, adjustments, and interpretation using operating cash flow and capital investments.

Explore solvency ratios and coverage metrics to assess a firm's indebtedness, using debt to equity, debt to capital, debt to assets, and financial leverage from balance sheets and income statements.

Explore how valuation ratios, including earnings per share, price-earnings multiples, and dividend yield, assess intrinsic value of common equity and compare shares to industry peers.

Demonstrate how to decompose return on equity using the DuPont framework, showing how net profit margin, asset turnover, and financial leverage drive ROE changes across two years.

Learn how sustainable growth rate, retention rate, and dividend payout influence a firm's growth and valuation, using return on equity and risk measures like the coefficient of variation.

Explore ratio analysis and forecasting using historical financials and gross profit margins to project revenue and profits, then test scenarios with sensitivity analysis and worst-case, base-case, and best-case analyses.

Explore how inventory is measured and recorded, compare fifo and litho valuation methods, and assess net realizable value implications, footnote disclosures, and inventory ratios.

Explore inventory basics, including raw materials, work in progress, and finished goods, and distinguish product costs capitalized in inventory from periodic costs expensed in the income statement.

Explore inventory valuation methods to determine end-of-year stock value, including fifo, lifo, the weighted average cost method, specific identification, and note that ifrs does not allow lifo.

Explore inventory valuation methods, including FIFO, weighted average, and LIFO, calculating cogs, ending inventory, and gross profit with a practical Vintage Co. example.

Learn how to convert financial statements from LIFO to FIFO in inflationary environments, using the LIFO reserve to adjust inventory, COGS, taxes, cash, and retained earnings.

Learn to convert financial statements from LIFO to FIFO in an inflationary environment, adjusting inventory, COGS, taxes, and retained earnings on the balance sheet.

Explore footnote disclosures that reveal the cost flow method—FIFO, litho accounting, weighted average, or specific identification—and how inventory details, write-downs, reversals, and collateral are disclosed under IFRS and USCAP.

Analyze the inventory section and footnotes to forecast future revenue and earnings by examining raw materials, work in progress, finished goods, turnover, and their demand signals.