Financial Health, Costing, and Valuation

This unit teaches students to assess and manage the financial health of a small business through analysis of profitability, cash flow, costing, and valuation. Students will learn tools for identifying financial distress, improving margins, preparing budgets and cash reports, and evaluating financing and exit options to support informed management decisions.

Learning Objectives

• Analyze profit-and-loss statements, balance-sheet indicators, and liquidity ratios to spot financial condition problems and internal control weaknesses
• Compute product/unit costs, cost of goods sold, breakeven points, and model how changes in sales price and volume affect profit margins
• Develop and apply cash flow reports, budgeting tools, and liquidity measurement techniques to recommend actions that improve working capital and cash management
• Evaluate sources of capital, business valuation methods, and bankruptcy/exit planning options to recommend financing strategies and succession or disposition plans