Financial Reporting & Analysis

Financial Reporting & Analysis

1 Introduction to Finance and Business Analytics

  1. Overview and Scope of Financial Reporting and Business Analytics
  2. Users of Accounting Information
  3. Accounting Concepts and Conventions

2 Process of Preparation of Financial Statements-Books of Accounts

  1. Journal
  2. Ledger
  3. Cash Book
  4. House Funds
  5. Petty Cash
  6. Purchases Journal
  7. Guest Ledgers
  8. Credit Card Accounts
  9. Cash Disbursements Journal
  10. General Ledger
  11. General Journal
  12. Payroll Journal
  13. Specialized Journals for Lodging Operations

3 The Statement of Cash Flows

  1. Purpose, Format and Uses
  2. What information is reported in the Statement of Cash Flows
  3. Three Categories of Cash Flows
  4. Non-cash Investing and Financing
  5. Direct and Indirect Methods
  6. Using Cash Flow Information to Forecast Future Financial Position

4 Revenue Cycles: Sales, Receivables, and Cash

  1. Revenue Recognition
  2. Pressure to Recognize Revenues
  3. Timing: Delivery, Percentage of Completion, Installment Methods
  4. Amount: Bad Debts, Sales Discounts, Sales Returns and Allowances, Warranty Costs
  5. Revenue Management for Hotels
  6. Analysis of Monetary Assets: Current Ratio, Acid Test, Days of Receivables

5 Earnings Management

  1. Factors that motivate earnings management; meet internal targets or external expectations, income smoothing
  2. Common techniques used to manage earnings
  3. Window dressing for an IPO or loan
  4. Cost of goods sold and inventory – What is inventory and who owns it?
  5. Type of companies: Merchandise, manufacturing, or services
  6. The cost of inventory
  7. Accounting for inventory and cost of goods sold
  8. Inventory costing methods: Specific identification, FIFO, LIFO, average cost

6 Understanding Annual Reports and Financial Statement Analysis

  1. Analysis of financial statements
  2. Horizontal analysis, Vertical analysis
  3. Trend analysis, Ratio analysis
  4. Ratio standards, Purposes of ratio analysis
  5. Average vs. ending value
  6. Liquidity ratios
  7. Solvency ratios
  8. Activity ratios
  9. Profitability ratios

7 Viewpoints regarding profitability ratios

  1. Viewpoints regarding profitability ratios
  2. Operating ratios
  3. Mix of sales
  4. Average daily rate (ADR)
  5. Revenue per available room (RevPAR)
  6. Average food service check
  7. Food cost percentage
  8. Beverage cost percentage
  9. Labor cost percentage