Financial Statements, Controls, and Valuation

This unit deepens students’ ability to read, interpret, and use financial statements, cash flow analysis, internal controls, and valuation techniques for business decision-making. Students apply costing, forecasting, pricing, and control principles using sample statements and electronic accounting systems to prepare for advanced applied analysis in later units.

Learning Objectives

• Analyze internal and external financial statements (balance sheet, income statement, statement of cash flows) to calculate key liquidity, solvency, and profitability measures and interpret implications for business health.
• Evaluate accounting systems and internal controls in an electronic environment, identify weaknesses and common ‘tricks of the trade,’ and recommend specific control or process improvements to protect and manage money flows.
• Apply costing, forecasting, pricing, and business valuation techniques to compute product costs, set sales prices, build basic financial forecasts, and estimate business value using commonly used methods.
• Demonstrate proficiency in reading and critiquing financial reports for private and public entities by preparing written summaries that highlight conservative accounting choices, differences between profit and cash flow, and strategic profit insights.