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
- Difference between cash and profit in detail
- Where did the money come from & where did the money go
- 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
- Is it red or black and why?