Financial statements, including the Income Statement, the Cash Flow Statement, and the Balance Sheet, work as a dashboard of the financial performance of an organization. Knowing how these financial statements are created, and how they reflect the performance of the organization, helps non-financial professionals better understand how their own functional areas can affect the company's bottom line. These financial reports are also used by professionals in all areas for evaluating proposals, suppliers, competitors, markets, and the general condition of the industry they operate in.
This course aims to familiarize you with these three financial statements and how they reflect an organization's overall activities and performance. This course takes you through the various sections of these statements and explains how each is calculated. Finally, the course demonstrates how common business transactions affect an organization's financial condition with the help of an example.Learning Objectives
- Calculate the gross profit, income from operations, and net income from given Income Statement data
- Calculate the value of different types of cash flows in a Cash Flow Statement
- Determine the value of Assets, Liabilities, and Shareholders' Equities in a Balance Sheet
- Recognize how common business transactions affect an organization's financial statements in an example