1. Building Business Acumen Series: Making Dollars and Sense of Financial Statements Presented by : The Dean Consulting Group Diane D. Dean Principal December 4, 2007

2. The Dean Consulting Group Outcomes At the end of todays session, you will: Be financially literate. Acquire a better understanding of key financial terminology. Reviewed the tools necessary to get a handle on your business finances. Be familiar with the functions of the basic financial statements: balance sheet, income and cash flow statements. Know how to speak the language of and analyze numbers.

3. The Dean Consulting Group Accounting methods

4. The Dean Consulting Group Components of the Annual Report Auditors Report Balance Sheet/Statement of Financial Position Income Statement/Statement of Activities Statement of Cash Flow Notes to the Financial Statements Managers Discussion and Analysis

5. The Dean Consulting Group Auditors Report Introductory Paragraph - denotes timeframe of the audit and who is responsible for the financial statements. This is where the auditor attempts to limit their responsibility for possible inaccuracies.

6. The Dean Consulting Group Auditors Report Scope Paragraph – Explains how auditors carried out the audit and they met the generally accepted audit standards (GAAS).

7. The Dean Consulting Group Auditors Report Opinion Paragraph – Where the auditors state their opinion about the financial statements. If there are no problems, they will state "In conformity with generally accepted accounting principles" (GAAP).

8. The Dean Consulting Group Balance Sheet

9. The Dean Consulting Group Income Statement

10. The Dean Consulting Group Statement of Cash Flow

11. The Dean Consulting Group Notes to the Financial Statements Very important notes listed on various pages after the financial statements. It includes: The accounting methods used Red flags about the companys finances Any legal entanglements that may threaten organization's future.

12. The Dean Consulting Group Managers Discussion and Analysis (MD&A) You find in this section key discussions about what went well and did not.

13. The Dean Consulting Group Managers Discussion and Analysis (MD&A) Three key areas: Company operations Capital resources Liquidity

14. The Dean Consulting Group Channeling Your Inner CSI: Analysis

15. The Dean Consulting Group Channeling Your Inner CSI: Analysis MD&A Financial Statements Working capital/fund balance (NFP) Current Ratio Gross Margin Trend Analysis

16. The Dean Consulting Group Q & A