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Agenda: DOLLARS AND SENSE
Course Goal: For each
participant to have a basic understanding of petroleum finance and
how they individually impact financial statement results.
Introduction
Dispel the "myth" that understanding "Financial Statements" requires
an accounting degree or background
Explain the basic components of "Financial Statements"
Give examples of how each employee's performance impacts the
company's financial statements
Explain the difference between cash and profit
Explain "getting behind the numbers"
Part 1: The Profit and Loss Statement
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Difference between cash and
profit in detail
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Where did the money come from &
where did the money go
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Total revenues, cost of sales
or goods, gross profit,
operating expenses, other income/expenses ,
net profit before tax, then the "bottom line" aka net profit/loss
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Is it red or black and why?
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Part 2: Balance Sheet -
the one day in time "snapshot"
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The Balance Sheet Equation of
Assets = Liabilities + Shareholders' Equity
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Assets - what the company owns
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What has been done with the
cash
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Current versus long term assets
and why
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How quickly can assets convert
to cash (the concept of liquidity)
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Typical petro assets
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Liabilities - what the company
owes
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Current versus long term
liabilities and why listed by due dates
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Typical petro liabilities
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Shareholders' Equity - aka net
worth, capital, retained earnings
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Why it's important
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What it means to owners,
bankers and suppliers
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Part 3: CPA and Cash Flow
Statements
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Why profit doesn't always mean
cash
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How petro companies generate
cash
o Operations
o Investments
o Financing
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How petro companies spend cash
o Operations
o New Assets and Investments
o Pay off debt
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Why companies use a CPA firm
for year end financials
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Types of CPA Financial
Statements
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Compiled versus Reviewed versus
Audited
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What Footnotes are and what
they mean
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With every session, your team will:
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Identify exactly where they can
make a difference on your company's results
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Create a personal action plan
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What if I still have questions?
Feel free to call our office at
800-728-9005 and speak with one of
our staff about any concerns or questions you may have. Our offices
are open M-F, 8-5pm CST
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