Intro To Financial Statements For Entrepreneurs

Learn the basics of the Income Statement, Balance Sheet and Cash Flow Statement and understand how they fit together.

Last updated 2022-01-10 | 4.2

- Learn what the three financial statements are
- Learn what each financial statement is used for
- Learn the basic structure of each financial statement

What you'll learn

Learn what the three financial statements are

Learn what each financial statement is used for

Learn the basic structure of each financial statement

Learn how the three financial statements fit together

* Requirements

* None.

Description

This course is for entrepreneurs who need a basic understanding of financial statements and who don't have a lot of time.

It consists of 12 very short videos (most under 3 minutes) that cover:

• the income statement,
• the balance sheet,
• the statement of cash flows, and
• how they connect.

If you need to create a business plan or if you want to manage your business more effectively then you need to understand financial statements. This course is for you.

Who this course is for:

Startups, entrepreneurs and small business owners with little or no experience with financial statements.

Course content

5 sections • 12 lectures

Introduction 1 lectures

Course overview Preview 00:44

Are you mystified by financial statements? You’re not alone. A recent study by Intuit Canada found that most small business owners have a poor understanding of finance. We created this course to help you. In this series of short, simple videos, you’ll learn about three financial statements: the income statement, the balance sheet and the statement of cash flows, and how they work together. By the end, you’ll be able to read a complete set of integrated financial statements easily.

The Income Statement 3 lectures

Overview: Sales, Profit, Loss. Preview 02:36

In this video, we introduce the income statement, which tells you about your company’s financial health. We’ll look at the relationship between sales, expenses and net income and how that determines profit or loss.

Cost of Goods Sold, Gross Profit, Expenses. Preview 03:54

In this video, we continue our look at the income statement and dig into the expenses section. You'll learn about different types of expenses, cost of goods sold (or COGS), and how calculate your expenses to determine gross profit from sales.

EBITDA, Net Income. Preview 02:29

This video completes our look at the income statement. You’ll learn about EBITDA, what it stands for, and how to calculate it. You’ll arrive at net income and finish off your income statement.

The Balance Sheet 4 lectures

Overview: Assets, Liabilities & Owner's Equity. Preview 02:03

In this video, we introduce the balance sheet – the snapshot of your company’s financial health. You’ll learn why it’s called a balance sheet and what that has to do with its two main components: assets and owner’s equity and liabilities.

Current Assets, Long-Term Assets, Total Assets Preview 02:11

In this video, we’ll dig deeper into the balance sheet and explore the assets section. You’ll learn about the differences between current and long-term assets and how to calculate total assets.

Current Liabilities, Long-Term Liabilities and Total Liabilities Preview 02:06

In this video, we continue our look at the balance sheet by moving to the liabilities section. You’ll learn the difference between current and long-term liabilities and what to include when calculating them.

Owner's Equity. Preview 03:37

In this video, we complete our look at the balance sheet. You’ll learn about owner’s equity and its two components: common stock and retained earnings. Then we’ll show you how assets, liabilities and owner’s equity all come together to create balance in the balance sheet.

The Statement of Cash Flows 3 lectures

Why the Income Statement and Balance Sheet aren't enough. Preview 02:21

This video introduces the statement of cash flows – the measure of cash, the lifeblood of the company. We take you through an example that shows how the balance sheet can go out of balance and why you need a statement of cash flows to resolve it.

How Accounts Receivable Affects Cash Flow Preview 02:44

In this video, we’ll look at the statement of cash flows and how it shows where the money goes in your company. You’ll learn about accounts receivable and the role that plays in restoring balance to the balance sheet. We’ll also show you how the statement of cash flows links to both the balance sheet and the income statement.

Net Cash from Operations, Investments, Financing. Preview 03:50

In this video, we dig into the statement of cash flows and how it measures the ebbs and flows of cash in your company. We’ll use an example to help you understand how you arrive at net cash by calculating these three sections of the statement of cash flows: cash from operations, cash from investing and cash from financing.

The Financial Statements, Integrated 1 lectures

A walk-through of an integrated set of financial statements. Preview 06:29

This video completes our course on financial statements by showing you how the income statement, balance sheet and statement of cash flows are connected. We’ll take you through two months in the life of a company as it’s recorded in the financial statements. If you’ve watched all the videos in the series, you’ll recognize all the terms and realize how far you’ve come in your understanding of financial statements.