Course 3 – Reading and Analyzing Financial Statements
The Reading and Analyzing Financial Statements course, which is comprised of 10 videos, provides detailed discussions of each of the four major financial statements individually and then introduces financial ratio analysis with an emphasis on interpreting the ratios as an integrated package. Ratio analyses are conducted on the 2017 financial statements of both Home Depot and Lowe’s and the last two videos introduce the ROE model and demonstrate how it can be used to provide helpful insights in the Home Depot vs. Lowe’s comparative analysis.
Course 3 Learning Objectives
- Explain what a balance sheet measures and describe the basic balance classifications and accounts.
- Explain what an income statement measures and describe the basic classifications and line items.
- Explain what the statement of cash flows measures and describe the three basic classifications, especially the operating section prepared under the indirect method.
- Explain what the statement of shareholders’ equity measures and describe the different accounts that appear on it.
- Assess Home Depot’s financial condition and performance by reviewing its financial statements.
- Describe the key areas of business performance and link them to the measures provided by the financial statements.
- List, compute and interpret a set of ratios that link to the key areas of business performance.
- Analyze the differences in the financial condition and performance of Home Depot vs. Lowe’s using a set of financial ratios.
- Explain how return on equity can be broken down into its determinants and link this model to the measures of the key areas of business performance.
- Analyze the differences in the financial condition and performance of Home Depot vs. Lowe’s using the ROE model.
Course Components
- PRATTedu Resources
- PRATTedu Program Structure
- Videos 1 – 10, each followed by knowledge check (KC) questions
- Assessment Quiz (must score 70%)
CPE Requirements
- The assessment Quiz must be completed satisfactorily no later than one year after enrollment, at which time your access to the website will expire.
- A 70% minimum score on Assessment Quiz is required for satisfactory completion and to receive a certificate.
Course Navigation
Main Course Page Navigation (Current Page)
The main course page for each course consists of 6 sections: (1) Course description; (2) Learning objectives; (3) Course components; (4) CPE requirements; (5) Course navigation; and (6) the master course navigator, which allows you to quickly jump to the various lessons that make up the course. The course structure and resources, the course videos, and the final assessment quiz.
Master Course Navigation
Simply complete the lessons in order. At the bottom of each lesson, are two buttons: Previous Lesson or Next Lesson. We also include excerpts in the buttons so you can quickly identify the content in each direction. You can always go back to the beginning of the course (course intro page) by clicking the “back to Course 1 – Introduction to Financial Statements link. Note: At the bottom of each completed lesson (right above the previous/next buttons) it will state “Complete Lesson” make sure you click it before moving on.
MAKE SURE YOU GET YOUR CERTIFICATE! Please read below:
You must mark each page of our courses as complete for our system to register for completion of a course and generate a certificate. The Structure and Resources section is typically missed by many users, simply scroll to the bottom of each page and click the blue “Mark Complete” button and enjoy your course!
Course Information
Course Instructor
Basic Enrollment
Scoring at least 70% on the assessment quiz after completion of this course earns a Certificate of Completion worth 3.5 hours of continuing professional education (CPE) credits.