understanding and interpreting financial results for better

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Understanding and Interpreting Financial Results for Better Management Decisions A one-day seminar for any financial or non-financial manager who evaluates results p r o p o s a l s financial health bottom line acquisitions long-term growth c a s h f l o w income statement balance sheet return on assets A fascinating, fast-paced day that will greatly enhance your ability to read, analyze and use financial statements to manage, drive and stay on top of your company’s growth. In one day, you’ll learn how to: Understand the specialized language of finance— vital terms like sales, revenue, costs, income, profits and more Get a firm grip on your company’s lifeblood— cash flow Quickly scan a financial report and pick out the numbers that matter Detect variances while there’s still time to take corrective action Appreciate key financial analysis ratios and tools Communicate confidently with even the most sophisticated financial professionals And much more! See an overview of the seminar agenda inside. Enroll today! Call toll free 1-800-873-7545 Presented by: SkillPath ® Seminars • The Smart Choice ® ® ©2003, SkillPath ® Seminars We’re coming to your area …

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Page 1: Understanding and Interpreting Financial Results for Better

Understanding and Interpreting Financial Results for Better Management Decisions

A one-day seminar for any financial or non-financial manager who evaluates results

p r o p o s a l s

f i n a n c i a l h e a l t h

b o t t o m l i n e

a c q u i s i t i o n s

l o n g - t e r m g r o w t h

c a s h f l o w

i n c o m e s t a t e m e n t

b a l a n c e s h e e t

r e t u r n o n a s s e t s

A fascinating, fast-paced day that will greatly enhance your ability to read, analyze and use financial statements to manage, drive and stay on top of your company’s growth.

In one day, you’ll learn how to:■ Understand the specialized language of finance—

vital terms like sales, revenue, costs, income, profits and more

■ Get a firm grip on your company’s lifeblood— cash flow

■ Quickly scan a financial report and pick out the numbers that matter

■ Detect variances while there’s still time to take corrective action

■ Appreciate key financial analysis ratios and tools

■ Communicate confidently with even the most sophisticated financial professionals

■ And much more! See an overview of the seminar agenda inside.

Enroll today! Call toll free 1-800-873-7545

Presented by: SkillPath® Seminars • The Smart Choice®® ©2003, SkillPath® Seminars

We’re

coming

to your

area …

Page 2: Understanding and Interpreting Financial Results for Better

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Quite simply, a financial statement—while often difficult to read and even more difficult to make sense of—is the most accurate scorecard of performance your organization has.

When complete and well-prepared, financial statements contain an incredible amount of timely and revealing information about a business’s financial health: Its strengths, vulnerabilities and challenges … whether or not it’s on track … if it’s really making money.

Few decision-makers fully understand the meaning behind financial statements or know how their businesses are truly doing. But those who do hold the power.Do you want to sharpen your ability to make tough decisions … identify and solve problems … monitor the performance of your department, projects and organization … plan effectively … avoid financial pitfalls … seize opportunities?

Are you ready to participate at a deeper level in meetings and discussions related to financial analysis—and be regarded as someone who really understands what’s going on?

Do you want to play a more significant, meaningful role in the future direction of your organization … and position it for long-term growth and profitability?

This comprehensive seminar shows you how by simplifying the principles, tools and practices for interpreting and using financial statements. In one day, you’ll delve deeply into the components of the financial statement and see how each is used, get familiar with often-used financial concepts and terminology, learn to determine which numbers are most important, master useful measurement tools and discover many other ways to turn your financial statement into your most powerful measurement and planning tool.

Finally, common-sense training that covers the finer points of financial analysis and reporting. Should you lease or buy that new piece of equipment? If business declined sharply, would your company be able to continue to meet its obligations? Would hiring more people now pay off in more profits later? Do you have too much inventory on hand—or too little?

These are tough questions in any organization—but why make them any more complicated than they need to be in yours? Attend this intensive seminar and learn how to not only think through and answer financial questions like these—but find them interesting and professionally challenging as well.

To enroll, call toll free 1-800-873-7545, on-line at www.skillpath.com, e-mail us at [email protected], fax us at 1-913-362-4241 or mail in the registration form on page 7

Learn how financial statements can help you answer critical management, lending and credit questions like these: ■ Do we have the cash flow to support the loan

required to expand to a new facility?

■ How can we be making money but still not have enough cash in the bank?

■ Which product lines are profitable? Which should be eliminated?

■ Are skyrocketing sales as good for our company as they seem, or are they generating losses as costs spiral out of control?

■ What do lenders look for in financial statements? Do they care that much about profits?

■ Where can we get data that will help us compare our performance to a competitor’s?

■ Is our liquidity good enough to cover debts, bills and expenses we’ve incurred but are not yet payable?

■ What are our options for measuring results? Which method is best for our needs?

■ What’s the difference between cash in the bank and profit on the bottom line?

■ Is negative cash flow always a bad thing?

■ Why is working capital so important?

■ Why would someone want to “cook the books,” and how can financial fraud be detected?

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Who Should Attend?Now any financial or non-financial professional can add the advanced financial analysis skills they need to succeed.

• Forthosewithlittleorno background in finance, this thorough seminar takes a complicated subject and makes it simple. In no time, they’ll be able to move from the big picture to the specifics and back again with confidence.

• Forthosewhoareexperienced analysts, it’s a convenient opportunity to gain fresh and useful insight for handling reporting issues and challenges with greater ease and effectiveness.

Intrigued? Then read on about all you’ll learn, including:■ What the three key financial statements—the Statement of Financial Position (Balance

Sheet), Statement of Earnings (Income Statement) and Statement of Cash Flows— really say about your business.

■ Why you can’t look at these three statements in isolation, how they fit together and often-overlooked ways they impact each other.

■ How to recognize what really drives the bottom line and what you can do to maximize these triggers and unleash profits.

■ How to zero in on the numbers and ratios that matter and use them to track, measure and predict financial performance with new accuracy.

■ How to detect increasing operating expenses, slow receivables, inventory build-up, negative cash flow and other problems—before the damage becomes irreversible.

■ How the same rules apply, whether you’re evaluating your own financial statements or those of a customer, vendor or company you’re thinking about acquiring or doing business with.

As you can see, we’ve packed a wealth of up-to-date, relevant information into this no-nonsense session. But we’ll deal with so much more—including the Z score, debt-to-equity, return on assets, revenue recognition issues, working capital, cash flow forecasting and inventory turnover.

And we’ll show you how to put it all together so you’ll possess the knowledge and experience required to consistently meet all your organization’s financial goals.

Call now to reserve your spot: 1-800-873-7545.

The answer is “Yes” if you can benefit from knowing how to:

✓ 1. Understand any financial statement and quickly zero in on the most important numbers.

✓ 2. Discuss day-to-day financial reporting issues confidently with those inside and outside your organization.

✓ 3. Read between the lines to avoid getting misled by the numbers.

✓ 4. Undertake genuine analysis instead of just going through the motions.

✓ 5. Forecast future revenue and profits with greater precision and create more accurate budgets.

✓ 6. Raise the questions no one else does—and draw the right conclusions.

✓ 7. Measure at a glance the financial strength of competitors, vendors, potential acquisitions, customers—any company.

✓ 8. Uncover hidden expenses and save your company money, both short- and long-term.

✓ 9. Recognize when numbers look questionable and should be examined more closely—rather than blindly accepting them.

✓ 10. Understand confusing financial terminology and how to use it appropriately.

✓11. Back up proposals and requests with the right numbers—and gain faster acceptance.

✓12. Identify early on key indicators that can mean trouble is brewing.

Is Financial Statement Analysis worth one day of your valuable time?

Page 4: Understanding and Interpreting Financial Results for Better

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The relationship between earnings and stock returns

What interest coverage and payment coverage ratios say

Avoid confusion surrounding quick and current ratios for liquidity analysis

The Balance Sheet—a snapshot of your financial health What goes into working capital and how it

can increase and decrease during the normal course of business

How valuing assets can be tricky

How days in accounts payable can upset the delicate balance of your operating cycle

Important things the Balance Sheet—all by itself—can tell you

The relationship between days sales outstanding and operating efficiency

Inventory turns—when to know you’re headed for trouble

Sorting through the Balance Sheet: Assets, liabilities and equity

The role of the Z score in predicting bankruptcy

What goes into the valuation of a business

Extended payment terms—could they be artificially inflating your revenue and profits?

Critical information sometimes hidden in footnotes—read them!

Ways the Balance Sheet can misrepresent— and mislead

Examine the cash operating system underlying your Balance Sheet

Essential concepts underlying the financial analysis process What financial statements are and what

they’re really supposed to tell us

The sources of reliable, well-prepared financial data

How understanding the rules of GAAP will save you time, frustration and embarrassment

Essential financial terms you absolutely need to know

The components of a healthy bottom line

The most serious limitation of financial statements

A step-by-step guide to analyzing a financial statement

The guiding principles underlying good financial reporting

7 characteristics of a well-prepared financial statement

Key measurement tools, ratios and indicators 4 useful ratios and what they tell you

How to recognize warning signals early on—before a crisis occurs

The hows and whys of trend analysis

How the easily calculated return on assets and return on equity give you a good idea of ROI

Your debt-to-equity ratio—what lenders want to see

Using the price-earnings ratio to compare stock values

To enroll, call toll free 1-800-873-7545, on-line at www.skillpath.com, e-mail us at [email protected], fax us at 1-913-362-4241 or mail in the registration form on page 7

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f i n a n c i a l h e a l t h

b o t t o m l i n e

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l o n g - t e r m g r o w t h

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The Income Statement—your measure of financial performance over time Deciphering the components of the

Income Statement

Activity-based accounting—a different way to look at results

The rules for smart break-even analysis

Overcoming the limited insight the Income Statement provides into operating leverage

Using common-size statements for variance analysis

What the Income Statement tells you about your business—and what it leaves out

When using EBITDA as an earnings measure is most relevant

The DuPont Formula—the questions it answers and the new ones it raises

The danger in accepting reported revenues at face value

Issues in recognizing revenue that could trip you up

The Statement of Cash Flows—the lifeblood of your business An overview of the GAAP Statement of Cash Flows

What the purpose of the Cash Flows Statement really is

Types of cash flows

The cash flows forecast—don’t make a purchasing or personnel decision without one

The key test of cash flows health

The difference between direct and indirect cash flows statements

When to factor in the Time Value of Money

Cash management tools your lender can supply to keep you on track

Brought to you by SkillPath— The Smart Choice® for people serious about successSkillPath trains thousands of achievement-oriented professionals like you every month, from organizations of all sizes and all types—business, government, health care, education and the military. Our seminar leaders are a select group of trainers at the top of their profession—skilled teachers with a tremendous depth of knowledge in their respective topic areas. Our commitment to providing you with the highest-quality learning experience possible has made SkillPath the fastest-growing training company in the world. Attend this seminar and experience for yourself the positive effects of powerful ideas, skillfully presented.

Program hours: 9:00 a.m. to 4:00 p.m.

On-site training and keynote speaking …

We can deliver this workshop right to your company’s door or provide customized, you-pick-the-day training on any program pertinent to your organization’s training goals. Or let our staff of professional trainers add sparkle to your next corporate or association meeting with a stimulating keynote speech designed just for you. Whether you have 3 or 300 people to train, SkillPath is the answer. For complete details and a no-obligation quote, call 1-800-873-7545 and ask for the on-site training department.

Just one day— that’s all it takes to gain

these vital financial skills

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America’s Top 500 Companies Can’t Be WrongTop-notch trainers, comprehensive materials and our guarantee of satisfaction ensure that a quality learning experience awaits you at every SkillPath program—three of the reasons that all 500 of the Fortune 500 companies choose us to train their people. We hope you will too. After all, when you need training, why settle for less than the best?SkillPath’s continuing support … We don’t just stand behind our seminars, we stand behind you. If, after attending the seminar, you’re faced with a problem and don’t know where to turn—try us. Just send a brief description of your particular problem or question and one of our specialists will promptly respond. Where else can you find that kind of support? Nowhere but with SkillPath.

Important InformationOur registration table opens at 8:15 a.m. When you arrive at the hotel, please check the directory for the exact location of the seminar. Our registrars will greet you, assist you with your registration (or collect your Express Admission Ticket), hand you your seminar materials and direct you toward your seat. You’ll also want to take the opportunity to meet other professionals from your local area. Introduce yourself! You may meet a new friend. Plan to be registered and ready to go by 8:50 a.m.We begin at 9:00 a.m. on the dot and wrap up at 4:00 p.m. Lunch is on your own from 11:45 a.m. to 1:00 p.m. Why not invite another participant to dine with you? You can share information, review the morning and make the day even more enjoyable.Parking. We do our best to find seminar facilities that have all the pluses we look for: Convenient location, great meeting rooms, courteous staff and plenty of free parking. However, some facilities have paid parking only. You may want to check with the facility personnel to determine parking fees—often they can direct you to free parking just around the corner.Tape recording. Our programs—both what you see and what you hear—are fully copyrighted by SkillPath. No audio recording or videotaping, please.

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Still Haven’t Picked Up the Phone?Five More Good Reasons Why You Will Want to Attend This Program …1. Our trainers are the best … period. We

choose only the pros who have a proven track record of training effectiveness, professionalism and expertise. And what’s more, they’re exciting communicators who’ll provide you with one of the most interesting days you’ve ever spent.

2. We give you only the most important, important information. There’s a lot of information out there that could take you years to gather on your own. In six short hours, we’ll give you what we believe is the best, most important information to help you be the best you can be.

3. Practicality is emphasized. You will leave this seminar with specifics you can apply immediately. And you won’t go home empty-handed. You’ll leave this workshop with a Certificate of Attendance; a soundly researched, unabridged workbook; and step-by-step guidelines for using the information you’ve just learned. We promise you’ll get results your very next day back at work.

4. The value is unbeatable. Not only is our enrollment fee among the lowest you’ll find, when four or more enroll from the same organization, you’ll enjoy a significant discount.

5. Our guarantee is unconditional, straightforward and the very best in the industry. How can we be so confident? Because we work hard before the seminar to make sure you’re happy after the seminar. Pertinent, up-to-date information you can really use, a convenient meeting location, seminar registrars who are courteous and helpful and a trainer who grabs your attention and takes you on an exciting journey full of fun and facts. We believe you’ll love every minute of it. Millions of satisfied participants from around the country are sold on SkillPath seminars. Why not join them?

We Guarantee ResultsIf you’re not happy, we’re not happy. Go back to work and apply the skills you learned in our seminar. If you’re not absolutely delighted with the results you achieve, write to us right away. We’ll issue you a refund or arrange for you to attend another SkillPath seminar without paying another penny. That’s our guarantee!

Locations and Dates

Page 7: Understanding and Interpreting Financial Results for Better

Your VIP Number:■ Charge to: ■ MasterCard ■ Visa ■ AmEx ■ Diners Club ■ Discover

Card number __________________________________________

Expiration date ________________________________________

Signature ____________________________________________

Payment information (Please pay before the seminar):

■ Confirming phone registration: # ___________________________■ Check enclosed payable to: SkillPath Seminars Mail to: SkillPath Seminars, P.O. Box 804441, Kansas City, MO 64180-4441

Check # _________________ Check amt. ___________________

■ Purchase order attached: # ________________________________■ Invoice my company Attention: ____________________________________________

Mr.Ms. ______________________________________________________________________________________________________________ Name and Title Program No.

E-mail Address ________________________________________________________________________________________________

Mr.Ms. ______________________________________________________________________________________________________________ Name and Title Program No.

E-mail Address ________________________________________________________________________________________________

Mr.Ms. ______________________________________________________________________________________________________________ Name and Title Program No.

E-mail Address ________________________________________________________________________________________________

Mr.Ms. ______________________________________________________________________________________________________________ Name and Title Program No.

E-mail Address ________________________________________________________________________________________________

Please list additional registrations on a separate sheet and attach.

Mr.Ms. ______________________________________________________________________________________________________________

Approving Supervisor Title

Company __________________________________________________________________________________________________________

Mailing Address ____________________________________________________________________________________________________

City, State, ZIP ______________________________________________________________________________________________________

Telephone _________________________________________________________________________ Ext. __________________________

Fax ______________________________________________________________________________________________________________

CLIP

PAGE

AND

MAI

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Please fill in the spaces above with the information that appears on your mailing label.

Your Preferred Customer Number:

To enroll by phone call toll free 1-800-873-7545. Please note: If you’ve registered by phone and paid with a credit card, it’s not necessary to return this form.

Registration Information Five Easy Ways to Register:By Phone 1-800-873-7545 or 1-913-677-3200

On-line Enroll on-line at www.skillpath.com

By E-mail [email protected]

Please include:•Nameandmailingaddress•Sessionyouwishtoattend•YourVIPnumberasitappears

on your mailing label•Approvingmanager•Billinginformation

By Fax 1-913-362-4241

By Mail Complete and mail enrollment form to:

SkillPath SeminarsP.O. Box 804441Kansas City, MO 64180-4441

7

Financial Statement Analysis

Financial Statement Analysis

YES! I can’t wait to attend …✗

Please add applicable state and local tax to your payment for programs held in Hawaii, South Dakota and West Virginia.

1. For the fastest service, phone 1-800-873-7545 or 1-913-677-3200. Our customer service representatives will be happy to take your enrollment. The easiest way to guarantee your place is to pay with a credit card when making your reservation, or you can mail in your payment before the seminar date.

2. Visit our Web site at www.skillpath.com for easy on-line registration.3. Or send your enrollment to us by e-mail at [email protected]. Please include the following information: Name and

mailing address; session you wish to attend; your VIP number as it appears on your mailing label; approving manager and billing information.

4. If you prefer to fax us your registration, the number is 1-913-362-4241. Please include credit card information or mail in your payment before the seminar date.

5. Of course, you can complete the enrollment form below, clip it and mail it with payment to: SkillPath Seminars, P.O. Box 804441, Kansas City, MO 64180-4441.

Whatever your method of registration, be sure to enroll right away since space is limited. As soon as we receive your enrollment, we’ll send your Express Admission Ticket. Simply bring it with you to the program and hand it to the registrar. If your ticket doesn’t arrive before the seminar, be sure to go anyway. We’ll be expecting you. Walk-in registrations are welcome on a space-available basis only.Your tuition is tax deductible. Even the government smiles on professional education. All expenses of Continuing Education (including registration fees, travel, meals and lodging) taken to maintain and improve professional skills are tax deductible according to Treasury Regulation 1.162-5 Coughlin vs. Commissioner, 203 F2d 307.Cancellations and substitutions. Cancellations received up to five working days before the seminar are refundable, minus a $10 registration service charge. After that, cancellations are subject to the entire seminar fee, which you may apply toward a future seminar. Please note that if you don’t cancel and don’t attend, you are still responsible for payment. Substitutions may be made at any time.

This SkillPath seminar qualifies for 5 contact hours (.5 CEUs) in accordance with guidelines set forth by the International Association for Continuing Education and Training—Authorized Provider number 3307.

You must attend the entire program to qualify for CEUs. Many national, state and local licensing boards and professional organizations will grant Continuing Education credit for attendance at our seminars (save this brochure and your Certificate of Attendance). You may want to contact your own board or organization to find out what’s required.SkillPath is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN 37219-2417. Web site: www.nasba.org. This seminar qualifies for 6 CPEs. No prerequisite courses, advance preparation or experience is required for admittance to this seminar. Program level: Intermediate. For more information regarding administrative policies such as complaint and refund, please contact our offices at 1-800-873-7545.

SkillPath’s FREE e-newsletter—get it today! Our monthly e-newsletter brings some of the greatest ideas from SkillPath’s most popular courses right to your desktop or laptop. It’s easy, it’s free—and it has something for everyone in your organization: Skill-building articles, software tricks, seminar schedules and monthly specials. Subscribe yourself—and all the key members of your staff—today at www.skillpath.com.

Page 8: Understanding and Interpreting Financial Results for Better

Understanding and Interpreting Financial Results for Better Management Decisions

A one-day seminar for any financial or non-financial manager who evaluates results

p r o p o s a l s

f i n a n c i a l h e a l t h

b o t t o m l i n e

a c q u i s i t i o n s

l o n g - t e r m g r o w t h

c a s h f l o w

i n c o m e s t a t e m e n t

b a l a n c e s h e e t

r e t u r n o n a s s e t s

A fascinating, fast-paced day that will greatly enhance your ability to read, analyze and use financial statements to manage, drive and stay on top of your company’s growth.

In one day, you’ll learn how to: Understand the specialized language of finance—vital terms like sales, revenue, costs, income, profits and more

Get a firm grip on your company’s lifeblood— cash flow

Quickly scan a financial report and pick out the numbers that matter

Detect variances while there’s still time to take corrective action

Appreciate key financial analysis ratios and tools

Communicate confidently with even the most sophisticated financial professionals

And much more! See an overview of the seminar agenda inside.

Enroll today! Call toll free 1-800-873-7545

Presented by: SkillPath The Smart Choice ©2003, SkillPath Seminars

We’re

coming

to your

area …

SkillPath Seminars6900 Squibb Road P.O. Box 2768 Mission, KS 66201-2768

a division of The Graceland College Center for Professional Development and Lifelong Learning, Inc.

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PLEASE RECYCLE

A fascinating, fast-paced day that will greatly enhance your ability to read, analyze and use financial statements to manage, drive and stay on top of your company’s growth.

One day of intensive training guaranteed to build the powerful

financial analysis skills today’s decision makers need

Understanding and Interpreting Financial Results for Better Management Decisions

Enroll today! Call toll free 1-800-873-7545

A one-day seminar for any financial or non-financial manager who evaluates resultsp r o p o s a l s

f i n a n c i a l h e a l t h

b o t t o m l i n e

a c q u i s i t i o n s

®

AFSA #08081