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Building Business Acumen Series: Making Dollars and Sense of Financial Statements

Building Business Acumen Series: Making Dollars and Sense of Financial Statements. Presented by : The Dean Consulting Group ™ Diane D. Dean Principal December 4, 2007. Outcomes. At the end of today’s session, you will: Be financially literate.

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Building Business Acumen Series: Making Dollars and Sense of Financial Statements

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  1. Building Business Acumen Series:Making Dollars and Sense of Financial Statements Presented by : The Dean Consulting Group™ Diane D. Dean Principal December 4, 2007

  2. Outcomes • At the end of today’s session, you will: • Be financially literate. • Acquire a better understanding of key financial terminology. • Reviewed the tools necessary to get a handle on your business finances. • Be familiar with the functions of the basic financial statements: balance sheet, income and cash flow statements. • Know how to speak the language of and analyze numbers. The Dean Consulting Group™

  3. Accounting methods The Dean Consulting Group™

  4. Components of the Annual Report • Auditor’s Report • Balance Sheet/Statement of Financial Position • Income Statement/Statement of Activities • Statement of Cash Flow • Notes to the Financial Statements • Manager’s Discussion and Analysis The Dean Consulting Group™

  5. Auditor’s Report • Introductory Paragraph - denotes timeframe of the audit and who is responsible for the financial statements. This is where the auditor attempts to limit their responsibility for possible inaccuracies. The Dean Consulting Group™

  6. Auditor’s Report • ScopeParagraph – Explains how auditors carried out the audit and they met the generally accepted audit standards (GAAS). The Dean Consulting Group™

  7. Auditor’s Report • OpinionParagraph – Where the auditors state their opinion about the financial statements. If there are no problems, they will state "In conformity with generally accepted accounting principles" (GAAP). The Dean Consulting Group™

  8. Balance Sheet The Dean Consulting Group™

  9. Income Statement The Dean Consulting Group™

  10. Statement of Cash Flow The Dean Consulting Group™

  11. Notes to the Financial Statements • Very important notes listed on various pages after the financial statements. • It includes: • The accounting methods used • Red flags about the company’s finances • Any legal entanglements that may threaten organization's future. The Dean Consulting Group™

  12. Manager’s Discussion and Analysis (MD&A) • You find in this section key discussions about what went well and did not. The Dean Consulting Group™

  13. Manager’s Discussion and Analysis (MD&A) • Three key areas: • Company operations • Capital resources • Liquidity The Dean Consulting Group™

  14. Channeling Your Inner CSI: Analysis The Dean Consulting Group™

  15. Channeling Your Inner CSI: Analysis • MD&A • Financial Statements • Working capital/fund balance (NFP) • Current Ratio • Gross Margin • Trend Analysis The Dean Consulting Group™

  16. Q & A The Dean Consulting Group™

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