● Explain what a balance sheet measures and describe the basic balance sheet classifications and accounts.
● Explain what an income statement measures an d describe the basic classifications and line items.
● Explain what the statement of cash flows measures and describe the three basic classifications, especially the operating section prepared under the indirect method.
● Explain what the statement of shareholders’ equity measures and describe the different accounts that appear on it.
● Assess Home Depot’s financial condition and performance by reviewing its financial statements.
● Describe the k ey areas of business performance and link them to the measu res provided by the financial statements .
● List, compute and interpret a set of ratios that link to the key areas of business performance .
● Analyze the differences in the financial condition and performance of Home Depot vs. Lowe’s using a set of financi al ratios.
● Explain how return on equity can be broken down into its determinants and link this model to the measures of the key areas of business performance.
● Analyze the differences in the financial condition and performance of Home Depot vs. Lowe’s u sing the ROE model.​