Financial Statements, Basically

This course explains financial statements through the business cycle of a startup. It introduces the balance sheet, income statement, and cash flow statement. Videos are in bitesize chunks, ranging from 90 seconds to 7 minutes. Students will learn how to:

• Prepare the Balance Sheet: Determine a company’s financial position through its assets, liabilities, and shareholders’ equity.
• Prepare the Income Statement: Track the company’s profitability by calculating revenues, expenses, and net income.
• Prepare the Cash Flow Statement: Evaluate the cash inflows and outflows from operating, investing, and financing activities.

This course goes through the first three years of the startup from inception to exit. As the years go by, the financial statements become more complex to reflect the startup’s growth. Topics explored in this course include:

• Matching Principle, Revenue Recognition: Know when revenues and expenses should be recorded to accurately reflect the company’s financial performance.
• Revenue Growth: Know how revenue growth impacts financial statements year over year.
• Line Items: Know the common line items on financial statements.

By the end of this course, students will have the skills to prepare the balance sheet, income statement, and cash flow statement. This knowledge will equip students with the practical skills needed to manage financial information in a real-world startup.