Techniques of Financial Analysis, Modeling, and Forecasting (14 hrs)

Course Description

Techniques of Financial Analysis, Modeling, and Forecasting – 14 hrs. CPE

This comprehensive course gives you every sales and financial forecasting formula and modeling technique you need to analyze your operation both as a whole and by segment. You’ll be provided with proven techniques that help you identify and fix problem areas, analysis techniques that help you evaluate proposals for profit potential, proven methods that improve the accuracy of your short- and long-term forecasting, analysis tools that help you better manage working capital, cash, and accounts receivable, plus much more. You also receive dozens of worked-out models and modeling techniques that simplify your most difficult business decisions, and are easy to adapt to any computer spreadsheet program. This course supplies company accountants, treasurers, CFOs with all the forecasting techniques needed to financially analyze a business as a whole or a segment. Includes analysis techniques, methods for improving forecasting accuracy, analysis tools for managing capital, and more.

Course information

Price: $115
Course No. 7013
Format: Online pdf (375 pages).
Prerequisites: None
Advance Preparation:  None
Level: Intermediate
CPE Credit: 14 Hrs.
Field of Study: Finance
Course expiration:  You have one year from date of purchase to complete the course.
Course Revision Date: June 2016


After completing this course, participants should be able to:

Chapter 1 Break-Even and Contribution Margin Analysis
1. Recognize how costs and revenues affect Cost-Volume-Profit (CVP) analysis.
2. Compute break-even levels for various scenarios.
3. Recognize the margin of safety and cash break-even point.

Chapter 2 Understanding and Applying the Time Value of Money Concept
1. Recognize the time value of money and how it affects financial decisions.
2. Calculate the present value of future payments.

Chapter 3 How to Assess Capital Expenditure Proposals for Strategic Decision Making
1. Recognize the purpose and use of the capital budget.
2. Calculate investment payback periods.
3. Recognize the use for the internal rate of return (IRR) calculations.
4. Identify the best methods for making long range investment decisions.

Chapter 4 Analyzing Financial Statements for Financial Fitness
1. Recognize a comprehensive set of financial ratios and interpret them.
2. Recognize the operating cycle of a business.

Chapter 5 Analyzing Quality of Earnings
1. Recognize different characteristics relating to a firm’s quality of earnings.
2. Identify the relationships between auditing and internal controls.

Chapter 6 Analysis of Variance Analysis for Cost Control
1. Recognize why standard costing is important it is for managerial control.
2. Distinguish among three types of responsibility centers and how they are evaluated.
3. Calculate different types of variances for manufacturing costs.
4. Recognize the managerial significance of these variances.
5. Identify the need for a flexible budget.

Chapter 7 Analysis of Segmental Performance and Profit Variance
1. Recognize how to calculate different variances for price, volume and sale mix.

Chapter 8 Evaluating Divisional Performance
1. Compute return on investment (ROI) by means of the Du Pont formula and show how changes in sales, expenses, and assets affect the investment center’s performance.
2. Calculate the residual income (RI) and profit margin based on ROI.
3. Identify how ROI and RI measures affect the division’s investment decision.

Chapter 9 Analyzing Working Capital
1. Recognize aspects affecting cash management and working capital.
2. Recognize ways to improve profitability by changes to accounts receivable.
3. Identify how changes in inventory carrying costs affect the organization.

Chapter 10 Corporate Investments
1. Recognize accounting aspects and terms for an investment portfolio.
2. Identify ways to compare risk versus return.
3. Recognize tools for fundamental and technical analysis.
4. Recognize the benefits of portfolio theory with regards to investment decisions.

Chapter 11 Obtaining Funds: Short-Term and Long-Term Financing
1. Compute cost of capital.
2. Distinguish between short-term, intermediate-term and long-term financing sources

Chapter 12 Analyzing Mergers and Acquisitions
1. Identify different types of mergers.
2. Recognize ways to acquire another business.

Chapter 13 Forecasting and Financial Planning
1. Recognize objectives of forecasts.
2. Identify different types of qualitative and quantitative forecasting methods.

Chapter 14 Forecasting Methodology
1. Identify forecasting models and techniques.

Chapter 15 Forecasting with Regression and Markov Methods
1. Identify variables of the least-squares method.
2. Identify statistics to look for in multiple regressions.

Chapter 16 Financial Forecasting and Budgeting Tools
1. Recognize assumptions of forecasting with the percent of sales method.
2. Identify major steps in budgeting and financial planning.
3. Identify requirements of zero-base budgeting.

Chapter 17 Forecasting Cash Flows
1. Recognize the value of the Lagged Regression Approach and Markov model in evaluating collection and bad debt.

Chapter 18 How to Use Corporate Planning Models
1. Identify reasons for corporate modeling
2. Recognize components of an integrated planning model

Chapter 19 Financial Modeling For “What-If” Analysis
1. Define a financial model.
2. Recognize application and uses of financial models.

Chapter 20 Using Optimization Techniques to Build Optimal Budgets
1. Recognize techniques for optimization including linear programming
2. Differentiate between methods of optimization
3. Recognize the disadvantages of optimization models

Chapter 21 Financial Modeling Packages and Executive Training
1. Recognize uses and variables for the bankruptcy prediction model
2. Identify the purpose for executive management games.

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