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E140A - Session 4

"Running the Numbers" Workshop and Case Method


Summary

The purpose of today's workshop is to discuss how financial statements can be used to assess and track the health of a company. To this end, this session has two main goals:
  1. Make sure that everyone is comfortable with the basic analysis of financial statements.
  2. Identify the key questions which are most important assessing the health of a start up within the context of E140A. Discuss how a company's financial statements can be used to answer these questions.

In addition, we will have a short discussion of the case method of learning (see readings and links from Session 6 )

Required Readings (Policy on Required Readings.)

  1. Riggs: "Understanding the Financial Score" Chapters 1,2,and 7
  2. Collins and Lazier: Chapter 6 (handout in binder)
  3. Valuation of High-Technology Ventures (Byers)

Study Question (Policy on Study Questions.)

  1. Make a list of your accounting questions and be prepared to discuss them in class.
  2. What is the case method of learning? What does the case method require of its participants?

Assignment

Login into the MFP Forum. Under the session assignment topic answer the following questions:
  1. How would you rate your accounting knowledge?
    1 - None
    2 - Limited
    3 - Moderate
    4 - Fair
    5 - Considerable

  2. No matter what your background, which accounting and finance concepts/metrics do you think are the most important for start ups?