A Guide to Understanding Financial Statements

Course details

Financial Statements are something everyone should understand how to read, as they teach you how to analyze the health of a business. This course covers the fundamentals of financial statements, helping you make more informed business decisions and grow in your career. Instructor Josh Aharonoff helps you master the fundamentals of how to read and understand financial statements. He does a deep dive into the three most common financial statements: profit and loss, balance sheet, and statement of cash flows. Josh dissects each section of these statements, explaining how they are connected and how to build a statement of cash flows.

Learning objectives
Learn about the financial statements, and what they are designed to inform you about.
Learn how to read profit and loss statements, balance sheets, and statements of cash flows.
Understand how the three financial statements are connected to one another.
Understand how to build a statement of cash flows.
Learn how to analyze financial statements to make more informed decisions.

Concepts

0. Introduction

01 - Why you need to understand financial statements

1. An Overview of Financial Statements

02 - What are financial statements
03 - Cash vs. accrual
04 - GAAP vs. IFRS

2. The Profit and Loss

05 - What is the profit and loss
06 - Conventional vs. functional classification for profit and loss
07 - Revenue
08 - Cost of goods sold
09 - Operating expenses
10 - Other income and other expenses
11 - Gross profit and gross margin
12 - Net operating income
13 - Net other income
14 - Net income before tax and after tax

3. The Balance Sheet

15 - What is a balance sheet
16 - Assets
17 - Current assets
18 - Long term assets
19 - Liabilities
20 - Current liablities
21 - Long term liabilities
22 - Owners equity

4. The Statement of Cash Flows

23 - What is the statement of cash flows
24 - Direct cash flows vs. indirect cash flows
25 - The three sections of the statement of cash flows

Conclusion

26 - How the financial statements connect together
27 - Take your career to the next level with these other areas