In the first segment of this workshop, participants learn about the basic balance sheet, income statement, and cash flow concepts in the context of a hypothetical corporation. As the corporation is capitalized, buys assets, borrows money, pays employees, and sells inventory, the participants gain an understanding of the different accounts, and financial statements are explained and their interrelationships developed.
After highlighting various GAAP presentation conventions, the workshop turns to the individual line items on the balance sheet and on the income statement. Each discussion is pragmatic and designed to make theoretical concepts concrete. For example, participants will examine a mock aging schedule to focus the discussion on aging, concentrations, and write-off methods. Then, to demonstrate how these accounts receivable concepts surface in legal practice, participants track through relevant representations and covenants from an acquisition agreement.
An integral part of all our line item discussions are the related notes to the financial statements. In addition to learning the general contours of a particular note, participants analyze the specifics of the appropriate note in a public company’s financial statements. If available, participants will use the financial statements of a publicly-held company that is a client of the firm.
The program concludes with an overview of the audit process and a brief introduction to ratios.
A detailed outline of the topics covered is available upon request.
Course Time Approximately six hours; the workshop is taught in two three-hour segments
Cost Available upon request