Introduction
Welcome to the “Financial Statement Fluency for Junior Bankers” course! In this first module, we will lay the foundation for understanding financial statements, which are crucial for assessing a company’s financial health and making informed decisions as a banker.
Learning Objectives:
By the end of Module 1, you will be able to:
- Define the three primary financial statements (Balance Sheet, Income Statement, Cash Flow Statement).
- Explain the purpose and structure of each financial statement.
- Understand how these statements are interrelated.
- Identify key financial statement terminology.
Lecture 1: Introduction to Financial Statements
- Video: “The Banker’s Toolkit – Financial Statements Explained” (30 minutes)
- Overview of why financial statements are essential for banking professionals.
- Introduction to the Balance Sheet, Income Statement, and Cash Flow Statement.
- Brief explanation of each statement’s purpose and structure.
- Audio Summary: “Financial Statements in a Nutshell” (10 minutes)
- Audio summary of key points for review.
Lecture 2: Understanding the Balance Sheet
- Interactive Tutorial: “Balance Sheet Basics” (20 minutes)
- Detailed explanation of Balance Sheet components (Assets, Liabilities, Equity).
- Examples of each component.
- Interactive Quiz: “Balance Sheet Quiz” (10 questions, 15 minutes)
- Multiple-choice questions to reinforce understanding of Balance Sheet concepts.
Lecture 3: Understanding the Income Statement
- Video Case Study: “Income Statement Insights” (25 minutes)
- Breakdown of Income Statement components (Revenues, Cost of Goods Sold, Operating Expenses, Net Income).
- Real-world example of analyzing an Income Statement.
- Workbook: “Income Statement Exercises” (20 minutes)
- Practical exercises to calculate key Income Statement metrics.
Lecture 4: Understanding the Cash Flow Statement
- Video Lecture: “Cash Flow Statement Essentials” (30 minutes)
- Introduction to the Cash Flow Statement sections (Operating, Investing, Financing Activities).
- Importance of cash flow for business operations and decisions.
- Discussion Forum: “Cash Flow Statement – Initial Impressions” (Post and respond to at least one peer, 10 minutes)
- Share initial thoughts on the Cash Flow Statement and its relevance to banking decisions.
Lecture 5: How Financial Statements Are Interrelated
- Animated Video: “The Financial Statement Connection” (15 minutes)
- Visual explanation of how the Balance Sheet, Income Statement, and Cash Flow Statement are linked.
- Gamified Quiz: “Financial Statement Connections” (10 questions, 15 minutes)
- Interactive quiz with rewards for correct answers.
Module 1 Project: Basic Financial Statement Analysis
- Guided Exercise: Analyze a Simplified Financial Statement Set (60 minutes)
- Step-by-step guide to analyzing a basic set of financial statements (Balance Sheet, Income Statement, Cash Flow Statement).
- Questions to answer based on the financial statements provided.
Module 1 Assessment:
- Multiple Choice Test: Financial Statement Fundamentals (20 questions, 30 minutes)
- Assess understanding of Module 1 content.
Additional Resources:
- Link: Investopedia – Financial Statements
- Link: Corporate Finance Institute – Financial Statement Analysis
- Article: “The Importance of Financial Statements for Investors” (10-minute read)
Engagement Elements:
- Forum Discussion: “Why Are Financial Statements Important for Bankers?” (Post and respond to at least one peer, 10 minutes)
- Live Q&A Session: “Introduction to Financial Statements” (30 minutes, optional)
- Peer Review: Share and review a basic financial statement analysis with a peer (30 minutes, optional)
Module 1 Completion Criteria:
- Complete all lectures and quizzes.
- Submit the Module 1 Project.
- Participate in at least one engagement activity.
Estimated Time to Complete: 6 hours
Upon completing Module 1, you will have a foundational understanding of financial statements and be ready to dive deeper into each statement in subsequent modules. Remember, understanding financial statements is a key skill for any banking professional, and this module lays the groundwork for your journey to financial statement fluency.
