外研版财会专业英语教案 Unit 9 analyzing financial statement教案

Content：Unit 9 analyzing financial statement

 Teaching aims:

1. learn the purpose of financial statement analysis

2. learn horizontal analysis

3. learn vertical analysis

4. learn ratio analysis

1.    the major words and phrases

2. horizontal analysis

3. vertical analysis

4. ratio analysis

1.horizontal analysis

2.. vertical analysis

3. ratio analysis

Step 1: words and phrases

First, let the Ss learn some new words and phrase and the expression in this unit.

Step 2:

1.Purpose of financial statement analysis

It pertains to managerial accounting and involves transforming data into useful information and using analytical tools to help users make better business decisions.

2.Horizontal analysis: horizontal analysis compares amounts for two or more successive periods. It involves the left-to-right movement of our eyes as we view comparative financial statements.

1) Computation of dollar changes and percent changes:

Dollar change= analysis period amount- base period amount

2) Example of dollar changes and percent changes:

After the Ss have learned the horizontal analysis and the equity, then the teacher will give the Ss some examples to let theme know the knowledge better.

 

Content：Unit 9 analyzing financial statement

 Teaching aims:

1. learn the purpose of financial statement analysis

2. learn horizontal analysis

3. learn vertical analysis

4. learn ratio analysis

2.    the major words and phrases

2. horizontal analysis

3. vertical analysis

4. ratio analysis

1.horizontal analysis

2.. vertical analysis

3. ratio analysis

Step 1:

3.    vertical analysis:

vertical analysis involves the up-down movement of our eyes as we review common-size financial statements. In vertical analysis, percentages are also used. They are used to show the relationship of the parts (individual or a group of financial statement.

a)      common-size statements

connmon-size percent=analysis amount/base amount * 100%

b)     example of common-size financial statements

example of common-size balance sheet

example of common-size income statement

4.    ratio analysis

ratios are the popular and widely use tools in financial statement analysis, a ratio is the mathematical relation between two quantities like a percent, rate, or proportion.

a)      liquidity and efficiency ratios

liquidity refers to a company’s ability to meet short-term or unexpected cash needs, efficiency refers to how productive a company is in using its assets.

Working capital and current ratio: working capital is the amount of current assets less current liabilities. A company needs sufficient amount of working capital to meet current debts, carry inventories, and grant cash discounts.

Current ratio=current assets/current liabilities

Acid-test ratio :

Acid-test ratio=quick assets/curent liabilities

Quick assets: they are cash, short-term investment, amounts receivable, and notes receivable.

Accounts receivable turnover: accounts receivable turnover measures how frequently a company a company turns its receivable into cash.

Accounts receivable turnover=net sales/average accounts receivable

Average days’ sales uncollected: this ratio measures the average time taken to collect receivables

Average days’ sales uncollected=days in year/receivable turnover

Inventory turnover: if a company wants to know how long it holds its merchandise before selling it, the ratio of inventory turnover will surely answer the question.

Inventory turnover=cost of goods sold/average inventory

Average days’ inventory on hand: this ratio measures the average days taken to sell inventory.

Average days’ inventory on hand=days in year/inventory turnover

Total assets turnover: total assets turnover describes the ability of a company to use its assets to generate sale.

Total asset turnover=revenues/average total assets

 

Content：reviewing 

 Teaching aims:

1. reviewing the whole words and phrases in this book

2. reviewing the whole expressions of the book

4. reviewing the whole knowledge of the accounting in this book

3.    the major words and phrases

2. expressions of the book

3. the whole knowledge of the accounting in this book

1. expressions of the book

2. the whole knowledge of the accounting in this book

Step 1: Reviewing the words and phrases

Step 2: reviewing the expressions

After the first step, then the teacher will give the Ss to review the useful expressions in this book, the expressions in the accounting English which is good for the accounting major Ss.

Step 3: reviewing the whole knowledge in this book

 Then the teacher will give the Ss several mins to think about what we have learned in the accounting English book, what we must know, what are useful for your major, etc, after finishing these, the teacher will review the whole knowledge what they have learned in the term with the Ss together.

 

 

Content：Unit 9 analyzing financial statement

 Teaching aims:

1. learn the purpose of financial statement analysis

2. learn horizontal analysis

3. learn vertical analysis

4. learn ratio analysis

4.    the major words and phrases

2. horizontal analysis

3. vertical analysis

4. ratio analysis

1.horizontal analysis

2.. vertical analysis

3. ratio analysis

Step 1:

5.    ratio analysis

ratios are the popular and widely use tools in financial statement analysis, a ratio is the mathematical relation between two quantities like a percent, rate, or proportion.

a)      solvency ratios

solvency refers to a company’ long-run financial ability to cover long-term obligation. Analysis of capital structure is the key point in evaluating solvency.

Debt ratio: this ratio assesses the portion of assets contributed by owners and the portion contributed by creditors.

Debt ratio=total liabilities/total assets

Equity ratio: the equity ratio expresses the total owners’ equity as a percent of total assets.

b)     profitability ratios

profitability refers to a company’s ability to produce profits. Profitability is also relevant to solvency.

Profit margin: profit margin, also called profit margin ratio, reflects a company’s ability to earn a net income form sales.

Profit margin=net income/revenue

Return on total assets: this ratio measures the overall earning power or profitability of a company.

Return on total assets=net income/average total assets

Step 2: exercise

After the teacher let the Ss learn the words and phrases, and then analysis the definition of the accounting, and the accounting elements, then the teacher will give the Ss some time to do the exercise, so that they can know better about the knowledge.

This class finished basically according to the teaching plan. Most students answered the questions actively and finished carefully the tasks the teacher gave. Students can grasp the important points of this class.