Recognize a comprehensive set of financial ratios and interpret them.

Recognize different characteristics relating to a firm’s quality of earnings.

Recognize ways to improve profitability by changes to accounts receivable.

Identify how changes in inventory carrying costs affect the organization.

Recognize how costs and revenues affect Cost-Volume-Profit (CVP) analysis.

Recognize the margin of safety and cash break-even point.

Recognize the time value of money and how it affects financial decisions.

Recognize the use for the internal rate of return (IRR) calculations.

Identify reasons for corporate modeling.

Recognize components of an integrated planning model.

Recognize application and uses of financial models.

Differentiate between methods of optimization.

Recognize the disadvantages of optimization models.

Recognize uses and variables for the bankruptcy prediction model.

Compute return on investment (ROI) by means of the Du Pont formula and show how changes in sales, expenses, and assets affect the investment center's performance.

Calculate the residual income (RI) and profit margin based on ROI.