-
3 Financial Statements: Balance Sheet, Income & Cash Flow
This video covers the fundamentals of financial statements, which are essential for analyzing any business. We break down the 3 main financial statements: the Balance Sheet, Income Statement, and Statement of Cash Flows. Learn how these statements provide a comprehensive view of a company's financial health, detailing its assets, liabilities, equity, revenue, expenses, and cash movements. Whether you're a finance student, business owner, or investor, this guide will help you grasp the key concepts of financial reporting.
Click here to learn more about this topic: https://corporatefinanceinstitute.com/resources/knowledge/accounting/three-financial-statements/
#FinancialStatements #BalanceSheet #IncomeStatement #CashFlowStatement #FinancialAnalysis
published: 11 Apr 2018
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Financial Statements Made Simple (For Investors)
Accounting is the language of business. Much like you cannot understand what type of dish you are ordering if you don't know the language of the menu, you cannot understand what type of business you are buying in the stock market if you don't know financial statements.
By the way, don't worry. You don't need a college degree in accounting or math for this. You just need to listen to how Bob makes shady deals with the Swedish Mars Mafia and how he beats his second Cousin Stephan to build the first empire of restaurants on the red planet.
---
My main tool for fundamental screening and analysis of stocks: https://app.tikr.com/register?ref=tsi
(If you sign up I earn a small commission)
---
Timestamps for understanding the financial statements:
00:00 Intro
00:22 The Language of Business
...
published: 01 Apr 2022
-
The INCOME STATEMENT Explained (Profit & Loss / P&L)
💥Income Statement Cheat Sheet → https://accountingstuff.com/shop
🖊Income Statement Practice Questions → https://accountingstuff.com/practice-questions
The 'Income Statement', or 'Profit and Loss Statement' (P&L) is one of the three major Financial Statements, along with the Balance Sheet and the Statement of Cash Flows. In this tutorial, you'll find out what the Income Statement is and how you can use it to measure a business's financial performance.
🔴Subscribe for more Accounting Tutorials → https://geni.us/subtothechannel
⏱️TIMESTAMPS
00:00 - Intro
01:02 - Income Statement Definition
01:10 - What a Basic Income Statement Looks Like
02:10 - An Analogy
02:37 - Expanding the Income Statement
03:16 - Direct Costs - Cost of Sales
04:48 - Gross Profit
05:10 - Indirect Costs - Overheads
06:1...
published: 19 Aug 2019
-
How to create Financial Statements from scratch! A step-by-step guide!
Join 10,000+ professionals who enrolled in the Controller Academy 🚀
https://controller-academy.com/courses/controller-academy
[coupon 30offprice for 30% discount]
Free KPI Cheat Sheet mentioned in the video:
https://thefincontroller.com/p/getkpicheatsheet
In this video we’ll start a new business, put in some capital, conduct transactions for 1 month and then record the transactions, create a trial balance, and then financial statements.
-------------------------------------------------------------------
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published: 29 Aug 2020
-
How the Three Financial Statements Fit Together
Brought to you by StratPad: Simple Business Plan App.
Try it free at http://www.stratpad.com
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.
http://www.stratpad.com/financial-statements-made-easy-video-course/how-the-three-financial-statements-fit-together/
Video Transcript
Nicely done! You've made it to the last video. And, by the way, don't be put off by the busy-ness of this screen. You know all this stuff here: income s...
published: 09 Jun 2013
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How to Analyze an Income Statement Like a Hedge Fund Analyst
This video covers how to analyze an income statement. How to analyze financial statements is one of the most crucial elements of fundamental investing. In particular, an income statement consists of a company's revenues (sales), its expenses and ultimately the company's profits. This video is an introduction to financial statement analysis for beginners.
After watching this video you will have a better understanding of the following questions:
How to value a stock, How to analyze a stock, how to analyze financial statements, how to analyze financial statements of a company, how to analyze an income statement and balance sheet.
Go to https://pblc.co/center and you will receive a free stock worth from $3 to $300 once you open and account and make a deposit.
Link to Investor Center Patre...
published: 28 Dec 2021
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Understanding Financial Statements | Reading Financial Statements
Reading Financial Statements | Corporate Finance Institute®
View full playlist: https://www.youtube.com/playlist?list=PLl3-0Xe_motTmt8KU8PQdt2URdOzBFRuX
Copyright © 2015 – 2020, CFI Education Inc. All Rights Reserved.
Enroll in the full course to earn your certification and advance your career: https://courses.corporatefinanceinstitute.com/courses/learn-to-read-financial-statements-free-course
Learn how to read financial statements. In this free course, we use a company's financial statements and annual report to understand the financial strength of a company and help us make informed decisions. We learn how to read the balance sheet and its related notes using a company case study, Espresso Software. This will help us understand the financial strength of the company and help us make in...
published: 15 Apr 2020
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FINANCIAL REPORTING-Understanding the Cash Flow Statement
FINANCIAL REPORTING-Understanding the Cash Flow Statement
In this video, we dive deep into the Cash Flow Statement, one of the essential financial statements used in financial reporting. Learn how to interpret and analyze cash flows from operating, investing, and financing activities.
CALL US 0793555000
published: 03 Aug 2024
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THE INTERPRETATION OF FINANCIAL STATEMENTS (BY BENJAMIN GRAHAM)
Support the channel by getting The Interpretation of Financial Statements by Benjamin Graham here: https://amzn.to/2LrTbq5
As an Amazon Associate I earn from qualified purchases.
Fundamental analysis & value investing 101. This video presents the 5 greatest takeaways from Benjamin Graham’s classic, The Interpretation of Financial Statements.
A playlist that will help you in mastering Benjamin Graham’s art of Value Investing: http://bit.ly/2Txvxgd
Top 5 takeaways from Benjamin Graham’s The Interpretation of Financial Statements:
00:00 Intro
02:04 1. Understanding the Income Statement and the Balance Sheet
05:13 2. Industry Specifics
07:53 3. Watered Stocks
09:35 4. The Liquidation Value of a Firm
11:29 5. Expected Returns of the Quantitative Investor
TL;DW:
- Know thy income state...
published: 24 Mar 2019
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Financial Statements Explained | Balance Sheet | Income Statement | Cash Flow Statement
🚀 𝗦𝗶𝗴𝗻 𝘂𝗽 𝗳𝗼𝗿 𝗢𝘂𝗿 𝗖𝗼𝗺𝗽𝗹𝗲𝘁𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗲 𝗧𝗿𝗮𝗶𝗻𝗶𝗻𝗴 𝘄𝗶𝘁𝗵 𝟱𝟳% 𝗢𝗙𝗙 ➡️ https://bit.ly/3SPJ29y
The three main financial statements are:
• The Income Statement
• The Balance Sheet
• The Cash Flow Statement
These statements serve as the foundation for understanding a company's financial health, offering insights beyond the reach of basic accounting knowledge. What is the main goal of a business?
The primary goal of any business is to make a profit. Without profit, a company cannot sustain operations, pay employees, fulfill obligations to suppliers, or manage daily expenses. Eventually, unprofitable businesses face bankruptcy.
The Income Statement plays a pivotal role in this narrative by detailing a company's financial performance over a specific period. Also known as the Profit and Loss Statement ...
published: 16 Feb 2024
1:19
3 Financial Statements: Balance Sheet, Income & Cash Flow
This video covers the fundamentals of financial statements, which are essential for analyzing any business. We break down the 3 main financial statements: the B...
This video covers the fundamentals of financial statements, which are essential for analyzing any business. We break down the 3 main financial statements: the Balance Sheet, Income Statement, and Statement of Cash Flows. Learn how these statements provide a comprehensive view of a company's financial health, detailing its assets, liabilities, equity, revenue, expenses, and cash movements. Whether you're a finance student, business owner, or investor, this guide will help you grasp the key concepts of financial reporting.
Click here to learn more about this topic: https://corporatefinanceinstitute.com/resources/knowledge/accounting/three-financial-statements/
#FinancialStatements #BalanceSheet #IncomeStatement #CashFlowStatement #FinancialAnalysis
https://wn.com/3_Financial_Statements_Balance_Sheet,_Income_Cash_Flow
This video covers the fundamentals of financial statements, which are essential for analyzing any business. We break down the 3 main financial statements: the Balance Sheet, Income Statement, and Statement of Cash Flows. Learn how these statements provide a comprehensive view of a company's financial health, detailing its assets, liabilities, equity, revenue, expenses, and cash movements. Whether you're a finance student, business owner, or investor, this guide will help you grasp the key concepts of financial reporting.
Click here to learn more about this topic: https://corporatefinanceinstitute.com/resources/knowledge/accounting/three-financial-statements/
#FinancialStatements #BalanceSheet #IncomeStatement #CashFlowStatement #FinancialAnalysis
- published: 11 Apr 2018
- views: 125620
30:43
Financial Statements Made Simple (For Investors)
Accounting is the language of business. Much like you cannot understand what type of dish you are ordering if you don't know the language of the menu, you canno...
Accounting is the language of business. Much like you cannot understand what type of dish you are ordering if you don't know the language of the menu, you cannot understand what type of business you are buying in the stock market if you don't know financial statements.
By the way, don't worry. You don't need a college degree in accounting or math for this. You just need to listen to how Bob makes shady deals with the Swedish Mars Mafia and how he beats his second Cousin Stephan to build the first empire of restaurants on the red planet.
---
My main tool for fundamental screening and analysis of stocks: https://app.tikr.com/register?ref=tsi
(If you sign up I earn a small commission)
---
Timestamps for understanding the financial statements:
00:00 Intro
00:22 The Language of Business
01:43 Issuing Common Stock
01:55 Important Difference Between the Statements
02:28 Cash & Equivalents
02:40 The Accounting Equation
04:41 Long-Term Debt
05:02 Property, Plant & Equipment
05:31 Current VS Long-Term Assets
07:40 Cost of Goods Sold (COGS)
07:57 The Income Statement
08:15 Gross & Net Income
08:34 Selling, General & Admin Expenses (SG&A)
09:43 COGS or SG&A?
10:20 Introduction to Depreciation
11:28 Capitalization
12:02 Depreciation & Amortization
12:45 Accumulated Deprecation
13:05 The Importance of Profit Margins
13:43 Interest Expenses
13:53 Income Tax Expense
14:11 Retained Earnings
14:21 The Cash Flow Statement
14:39 How the Statements are Linked
15:00 Cash from Operations
15:31 Cash from Investing
16:01 Capital Expenditures
16:16 Cash from Financing
16:28 Net Change in Cash
16:58 Only the Balance Sheet Accumulates
17:30 The “Stickiness” of Expenses
18:16 Inventory
18:26 Change in Net Working Capital
20:02 Research & Development (R&D)
20:36 Freeing up Cash
21:10 Collateral & Defaults
21:40 Debt/Equity Ratio
22:08 Issuing More Stock (Equity)
22:50 Equity VS Debt
23:29 Additional Paid in Capital
23:43 Other Intangibles
24:14 Amortization of Intangible Assets
24:35 Expanding the Costs
25:22 Major Expansion & Expenses
25:45 Accounts Payable
25:58 Accounts Receivables
26:39 Accrued Expenses
27:06 Dividends
27:58 Repurchasing Shares
28:40 Treasury Stock
29:12 Acquisitions
29:45 Goodwill
30:18 Short-Term Investments
---
My goal with this channel is to help you make more money and improve your personal finances. How to become a millionaire? There are many ways to get there – investing in the stock market, becoming a stock trader, doing real estate investing, or why not becoming an entrepreneur? But whether you are interested in how to invest in stocks or investing strategies for creating passive income with rental properties – I hope to be able to provide you with a solution (or at least an idea) here. Warren Buffett - the greatest investor of our time - says that you should fill your mind with competing ideas and then see what makes sense to you. This channel is about filling your mind with those ideas. And in the process – upgrading your money-making toolbox.
https://wn.com/Financial_Statements_Made_Simple_(For_Investors)
Accounting is the language of business. Much like you cannot understand what type of dish you are ordering if you don't know the language of the menu, you cannot understand what type of business you are buying in the stock market if you don't know financial statements.
By the way, don't worry. You don't need a college degree in accounting or math for this. You just need to listen to how Bob makes shady deals with the Swedish Mars Mafia and how he beats his second Cousin Stephan to build the first empire of restaurants on the red planet.
---
My main tool for fundamental screening and analysis of stocks: https://app.tikr.com/register?ref=tsi
(If you sign up I earn a small commission)
---
Timestamps for understanding the financial statements:
00:00 Intro
00:22 The Language of Business
01:43 Issuing Common Stock
01:55 Important Difference Between the Statements
02:28 Cash & Equivalents
02:40 The Accounting Equation
04:41 Long-Term Debt
05:02 Property, Plant & Equipment
05:31 Current VS Long-Term Assets
07:40 Cost of Goods Sold (COGS)
07:57 The Income Statement
08:15 Gross & Net Income
08:34 Selling, General & Admin Expenses (SG&A)
09:43 COGS or SG&A?
10:20 Introduction to Depreciation
11:28 Capitalization
12:02 Depreciation & Amortization
12:45 Accumulated Deprecation
13:05 The Importance of Profit Margins
13:43 Interest Expenses
13:53 Income Tax Expense
14:11 Retained Earnings
14:21 The Cash Flow Statement
14:39 How the Statements are Linked
15:00 Cash from Operations
15:31 Cash from Investing
16:01 Capital Expenditures
16:16 Cash from Financing
16:28 Net Change in Cash
16:58 Only the Balance Sheet Accumulates
17:30 The “Stickiness” of Expenses
18:16 Inventory
18:26 Change in Net Working Capital
20:02 Research & Development (R&D)
20:36 Freeing up Cash
21:10 Collateral & Defaults
21:40 Debt/Equity Ratio
22:08 Issuing More Stock (Equity)
22:50 Equity VS Debt
23:29 Additional Paid in Capital
23:43 Other Intangibles
24:14 Amortization of Intangible Assets
24:35 Expanding the Costs
25:22 Major Expansion & Expenses
25:45 Accounts Payable
25:58 Accounts Receivables
26:39 Accrued Expenses
27:06 Dividends
27:58 Repurchasing Shares
28:40 Treasury Stock
29:12 Acquisitions
29:45 Goodwill
30:18 Short-Term Investments
---
My goal with this channel is to help you make more money and improve your personal finances. How to become a millionaire? There are many ways to get there – investing in the stock market, becoming a stock trader, doing real estate investing, or why not becoming an entrepreneur? But whether you are interested in how to invest in stocks or investing strategies for creating passive income with rental properties – I hope to be able to provide you with a solution (or at least an idea) here. Warren Buffett - the greatest investor of our time - says that you should fill your mind with competing ideas and then see what makes sense to you. This channel is about filling your mind with those ideas. And in the process – upgrading your money-making toolbox.
- published: 01 Apr 2022
- views: 267913
11:26
The INCOME STATEMENT Explained (Profit & Loss / P&L)
💥Income Statement Cheat Sheet → https://accountingstuff.com/shop
🖊Income Statement Practice Questions → https://accountingstuff.com/practice-questions
The 'Inc...
💥Income Statement Cheat Sheet → https://accountingstuff.com/shop
🖊Income Statement Practice Questions → https://accountingstuff.com/practice-questions
The 'Income Statement', or 'Profit and Loss Statement' (P&L) is one of the three major Financial Statements, along with the Balance Sheet and the Statement of Cash Flows. In this tutorial, you'll find out what the Income Statement is and how you can use it to measure a business's financial performance.
🔴Subscribe for more Accounting Tutorials → https://geni.us/subtothechannel
⏱️TIMESTAMPS
00:00 - Intro
01:02 - Income Statement Definition
01:10 - What a Basic Income Statement Looks Like
02:10 - An Analogy
02:37 - Expanding the Income Statement
03:16 - Direct Costs - Cost of Sales
04:48 - Gross Profit
05:10 - Indirect Costs - Overheads
06:15 - Operating Profit
06:42 - Comparative Periods
07:18 - Example - Imaginary Company
08:17 - Financial Ratio Analysis - Gross Profit Margin
09:34 - Interest Expenses & Tax
10:01 - Net Profit
10:12 - Gross Profit vs Operating Profit vs Net Profit
🔗VIDEO LINKS
▪ Balance Sheet → https://youtu.be/YZyBSU6YdmM
▪ Cash Flow Statement → https://youtu.be/Xy-yDw0gsgc
▪ Book Review → https://youtu.be/oNw4guzrzG4
🔝 CLOUD ACCOUNTING SOFTWARE
▪ QuickBooks Online USA (FREE TRIAL/DISCOUNT) → http://geni.us/jA9N
▪ QuickBooks Online Canada (FREE TRIAL/DISCOUNT) → https://geni.us/bNN7
▪ Xero (FREE TRIAL) → https://xeroamericas.grsm.io/ck90eoq1r6tu
🔎FAQ
▪ My Favourite Accounting Book for Beginners → http://geni.us/5mKR7m
🚶FOLLOW ME ON
▪ Instagram → https://www.instagram.com/accountingstuff
▪ TikTok → https://www.tiktok.com/@accounting_stuff
▪ Facebook → https://www.facebook.com/thisisaccountingstuff/
🎬LEARN ACCOUNTING BASICS FOR FREE
▪ The Full Playlist → https://www.youtube.com/playlist?list=PL5zKSeS09l339nB6ujJPQ9Rsv99_b-aTb
________________________
DISCLAIMER
Some of the links above are affiliate links, where I earn a small commission if you click on the link and purchase an item. You are not obligated to do so, but it does help fund these videos in hopes of bringing value to you!
For sponsorship, product reviews, and collaboration, you can email me here:
[email protected]
________________________
#accounting #accountant #accountingstuff
https://wn.com/The_Income_Statement_Explained_(Profit_Loss_P_L)
💥Income Statement Cheat Sheet → https://accountingstuff.com/shop
🖊Income Statement Practice Questions → https://accountingstuff.com/practice-questions
The 'Income Statement', or 'Profit and Loss Statement' (P&L) is one of the three major Financial Statements, along with the Balance Sheet and the Statement of Cash Flows. In this tutorial, you'll find out what the Income Statement is and how you can use it to measure a business's financial performance.
🔴Subscribe for more Accounting Tutorials → https://geni.us/subtothechannel
⏱️TIMESTAMPS
00:00 - Intro
01:02 - Income Statement Definition
01:10 - What a Basic Income Statement Looks Like
02:10 - An Analogy
02:37 - Expanding the Income Statement
03:16 - Direct Costs - Cost of Sales
04:48 - Gross Profit
05:10 - Indirect Costs - Overheads
06:15 - Operating Profit
06:42 - Comparative Periods
07:18 - Example - Imaginary Company
08:17 - Financial Ratio Analysis - Gross Profit Margin
09:34 - Interest Expenses & Tax
10:01 - Net Profit
10:12 - Gross Profit vs Operating Profit vs Net Profit
🔗VIDEO LINKS
▪ Balance Sheet → https://youtu.be/YZyBSU6YdmM
▪ Cash Flow Statement → https://youtu.be/Xy-yDw0gsgc
▪ Book Review → https://youtu.be/oNw4guzrzG4
🔝 CLOUD ACCOUNTING SOFTWARE
▪ QuickBooks Online USA (FREE TRIAL/DISCOUNT) → http://geni.us/jA9N
▪ QuickBooks Online Canada (FREE TRIAL/DISCOUNT) → https://geni.us/bNN7
▪ Xero (FREE TRIAL) → https://xeroamericas.grsm.io/ck90eoq1r6tu
🔎FAQ
▪ My Favourite Accounting Book for Beginners → http://geni.us/5mKR7m
🚶FOLLOW ME ON
▪ Instagram → https://www.instagram.com/accountingstuff
▪ TikTok → https://www.tiktok.com/@accounting_stuff
▪ Facebook → https://www.facebook.com/thisisaccountingstuff/
🎬LEARN ACCOUNTING BASICS FOR FREE
▪ The Full Playlist → https://www.youtube.com/playlist?list=PL5zKSeS09l339nB6ujJPQ9Rsv99_b-aTb
________________________
DISCLAIMER
Some of the links above are affiliate links, where I earn a small commission if you click on the link and purchase an item. You are not obligated to do so, but it does help fund these videos in hopes of bringing value to you!
For sponsorship, product reviews, and collaboration, you can email me here:
[email protected]
________________________
#accounting #accountant #accountingstuff
- published: 19 Aug 2019
- views: 1040315
18:51
How to create Financial Statements from scratch! A step-by-step guide!
Join 10,000+ professionals who enrolled in the Controller Academy 🚀
https://controller-academy.com/courses/controller-academy
[coupon 30offprice for 30% discoun...
Join 10,000+ professionals who enrolled in the Controller Academy 🚀
https://controller-academy.com/courses/controller-academy
[coupon 30offprice for 30% discount]
Free KPI Cheat Sheet mentioned in the video:
https://thefincontroller.com/p/getkpicheatsheet
In this video we’ll start a new business, put in some capital, conduct transactions for 1 month and then record the transactions, create a trial balance, and then financial statements.
-------------------------------------------------------------------
My Recommended Products (I will only share what I love ❤ here)
⚪️ 📸 My camera: https://amzn.to/3hXFSuj
⚪️ 📢 My Mic: https://amzn.to/2G0bu5s
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⚪️ Forensic Accounting: https://amzn.to/2G6t9bo
⚪️ Introduction to Finance: https://amzn.to/2ExgUEA
⚪️ Introduction to Managerial Accounting: https://amzn.to/33SEyE4
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DISCLAIMER: Links included in this description might be affiliate links. If you happen to purchase a product or service with the links that I provide I may receive a small commission. There is no additional charge to you! Thank you for supporting my channel so I can continue to provide you with free content each week!
All views expressed on my channel are mine alone. Not intended as financial or professional advice.
https://wn.com/How_To_Create_Financial_Statements_From_Scratch_A_Step_By_Step_Guide
Join 10,000+ professionals who enrolled in the Controller Academy 🚀
https://controller-academy.com/courses/controller-academy
[coupon 30offprice for 30% discount]
Free KPI Cheat Sheet mentioned in the video:
https://thefincontroller.com/p/getkpicheatsheet
In this video we’ll start a new business, put in some capital, conduct transactions for 1 month and then record the transactions, create a trial balance, and then financial statements.
-------------------------------------------------------------------
My Recommended Products (I will only share what I love ❤ here)
⚪️ 📸 My camera: https://amzn.to/3hXFSuj
⚪️ 📢 My Mic: https://amzn.to/2G0bu5s
⚪️ 🔦 My studio lights: https://amzn.to/301vAU3
⚪️ 🧠 Roger CPA Review Course (get 50% off): https://www.uworld.com/productreferral.aspx?ukey=8lzsxx2bT8qzYRxekeTKyWQ3d3d
⚪️ 📚 Learning//SkillShare (get 2 weeks free): https://www.skillshare.com/r/profile/Bill-Hanna/7521537
My Recommended Finance & Accounting Books 📚+🧠=💥
⚪️ Auditing: https://amzn.to/361wJhZ
⚪️ Forensic Accounting: https://amzn.to/2G6t9bo
⚪️ Introduction to Finance: https://amzn.to/2ExgUEA
⚪️ Introduction to Managerial Accounting: https://amzn.to/33SEyE4
---------------------------------------------------------------------
Hang Out with me on social media:
JOIN MY FACEBOOK GROUP HERE:
🙋🏼♂️https://www.facebook.com/groups/780732429036886/?source_id=101273467885666
FOLLOW ME ON INSTAGRAM:
📸 https://www.instagram.com/the_financial_controller/
DISCLAIMER: Links included in this description might be affiliate links. If you happen to purchase a product or service with the links that I provide I may receive a small commission. There is no additional charge to you! Thank you for supporting my channel so I can continue to provide you with free content each week!
All views expressed on my channel are mine alone. Not intended as financial or professional advice.
- published: 29 Aug 2020
- views: 353083
6:30
How the Three Financial Statements Fit Together
Brought to you by StratPad: Simple Business Plan App.
Try it free at http://www.stratpad.com
This video completes our course on financial statements by showing...
Brought to you by StratPad: Simple Business Plan App.
Try it free at http://www.stratpad.com
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.
http://www.stratpad.com/financial-statements-made-easy-video-course/how-the-three-financial-statements-fit-together/
Video Transcript
Nicely done! You've made it to the last video. And, by the way, don't be put off by the busy-ness of this screen. You know all this stuff here: income statement, statement of cash flows, the balance sheet. What I'm going to do now is a very fast rattle through of all three of these, just to cover off all the work that you already know.
Alright are you ready? Let's get going. Oh one thing -- by the way -- you'll see negative numbers don't have a dash in front of them; they're represented with brackets around them. Ok, ready go.
This is for January for Acme Web Design. The income statement starts off with sales of $5,000 and a corresponding costs of goods sold of $1,000. We know to subtract the $1,000 from the $5,000 to get to $4,000. Then we have a bunch of expenses: general and and administrative $6,000 -- that's your rent, telecommunications costs, administrative costs, that type of thing; no research and development costs; we have sales and marketing -- there was salary in there and a small campaign. Add all those up to get to $9,000.
Then subtract $9,000 from $4,000 to get to ($5,000). That's our fancily named subtotal: earnings before interest, taxes, depreciation and amortization or called EBITDA. We didn't have no interest -- we didn't pay anything to the bank — and therefore our net income is a ($5,000) loss. That means we didn't make any money here.
That ($5,000) goes over to the top of the statement of cash flows. The $5,000 worth of sales wasn't paid to us. Half of it instead went to accounts receivable ($2,500). When that happens it decreases the amount of cash available, therefore a negative number. But you can also see that it increases the accounts receivable showing on the balance sheet $2,500. But then, we didn't pay some of the costs this month. That increased our accounts payable $1,000 and also increased the amount of cash that we have on hand. There's our accounts payable down here $1,000.
So total cash from operations is ($6,500). We didn't buy any equipment, we didn't take out a loan, but the founder did put in $25,000 against common stock. Therefore, the total cash proceeds coming into the company this month is $18,500. That's the total of this ($6,500) and this zero and this $25,000. Cash at the start of the period was zero. Therefore, cash at the end of the period was $18,500 and this starts off our balance sheet right here.
We know what the accounts receivable is $2,500, therefore total current assets is $21,000. No equipment. There's the accounts payable $1,000. Total current liabilities of $1,000. No long-term liabilities. Total overall liabilities of $1,000.
There's the common stock $25,000 sliding in here. Retained earnings is, as you know, the total of all the profits and losses since the company began. If you look down, you see a total of liabilities and equity of $21,000 which balances with the total assets of $21,000. Our balance sheet balances -- whew.
We're almost there. I just want to show you one more thing.
Ok, so what I've done here is added in another month. We're going to go through the month of February and we're going to do it very quickly.
Alright, sales of $7,000 is up from the previous month. Corresponding 20 per cent of cost of goods sold $1,400 leaves a total gross profit of $5,600. Expenses hasn't changed, still $9,000 worth of expenses. $5,600 of gross profit minus the $9,000 of expenses equals the EBITDA of ($3,400). So we're still losing money but not as badly, which is exactly what you want to see in a new company.
We did pay the bank $100 worth of interest and I'll show you why in just a minute. ($3,400) minus $100 is equal to ($3,500) the loss for the month. And that starts off our statement of cash flows at the top ($3,500).
Ok, here's a little trickiness. The $2,500 in accounts receivable last month got paid to us this month but we also then took half. This sales then went back into accounts receivable. The difference between the $2,500 from last month and the $3,500 from this month is $1,000. So accounts receivable went up by $1,000 as you can see here, which just reduces our cash.
The rest of the video transcript can be found here:
http://www.stratpad.com/financial-statements-made-easy-video-course/how-the-three-financial-statements-fit-together/
https://wn.com/How_The_Three_Financial_Statements_Fit_Together
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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.
http://www.stratpad.com/financial-statements-made-easy-video-course/how-the-three-financial-statements-fit-together/
Video Transcript
Nicely done! You've made it to the last video. And, by the way, don't be put off by the busy-ness of this screen. You know all this stuff here: income statement, statement of cash flows, the balance sheet. What I'm going to do now is a very fast rattle through of all three of these, just to cover off all the work that you already know.
Alright are you ready? Let's get going. Oh one thing -- by the way -- you'll see negative numbers don't have a dash in front of them; they're represented with brackets around them. Ok, ready go.
This is for January for Acme Web Design. The income statement starts off with sales of $5,000 and a corresponding costs of goods sold of $1,000. We know to subtract the $1,000 from the $5,000 to get to $4,000. Then we have a bunch of expenses: general and and administrative $6,000 -- that's your rent, telecommunications costs, administrative costs, that type of thing; no research and development costs; we have sales and marketing -- there was salary in there and a small campaign. Add all those up to get to $9,000.
Then subtract $9,000 from $4,000 to get to ($5,000). That's our fancily named subtotal: earnings before interest, taxes, depreciation and amortization or called EBITDA. We didn't have no interest -- we didn't pay anything to the bank — and therefore our net income is a ($5,000) loss. That means we didn't make any money here.
That ($5,000) goes over to the top of the statement of cash flows. The $5,000 worth of sales wasn't paid to us. Half of it instead went to accounts receivable ($2,500). When that happens it decreases the amount of cash available, therefore a negative number. But you can also see that it increases the accounts receivable showing on the balance sheet $2,500. But then, we didn't pay some of the costs this month. That increased our accounts payable $1,000 and also increased the amount of cash that we have on hand. There's our accounts payable down here $1,000.
So total cash from operations is ($6,500). We didn't buy any equipment, we didn't take out a loan, but the founder did put in $25,000 against common stock. Therefore, the total cash proceeds coming into the company this month is $18,500. That's the total of this ($6,500) and this zero and this $25,000. Cash at the start of the period was zero. Therefore, cash at the end of the period was $18,500 and this starts off our balance sheet right here.
We know what the accounts receivable is $2,500, therefore total current assets is $21,000. No equipment. There's the accounts payable $1,000. Total current liabilities of $1,000. No long-term liabilities. Total overall liabilities of $1,000.
There's the common stock $25,000 sliding in here. Retained earnings is, as you know, the total of all the profits and losses since the company began. If you look down, you see a total of liabilities and equity of $21,000 which balances with the total assets of $21,000. Our balance sheet balances -- whew.
We're almost there. I just want to show you one more thing.
Ok, so what I've done here is added in another month. We're going to go through the month of February and we're going to do it very quickly.
Alright, sales of $7,000 is up from the previous month. Corresponding 20 per cent of cost of goods sold $1,400 leaves a total gross profit of $5,600. Expenses hasn't changed, still $9,000 worth of expenses. $5,600 of gross profit minus the $9,000 of expenses equals the EBITDA of ($3,400). So we're still losing money but not as badly, which is exactly what you want to see in a new company.
We did pay the bank $100 worth of interest and I'll show you why in just a minute. ($3,400) minus $100 is equal to ($3,500) the loss for the month. And that starts off our statement of cash flows at the top ($3,500).
Ok, here's a little trickiness. The $2,500 in accounts receivable last month got paid to us this month but we also then took half. This sales then went back into accounts receivable. The difference between the $2,500 from last month and the $3,500 from this month is $1,000. So accounts receivable went up by $1,000 as you can see here, which just reduces our cash.
The rest of the video transcript can be found here:
http://www.stratpad.com/financial-statements-made-easy-video-course/how-the-three-financial-statements-fit-together/
- published: 09 Jun 2013
- views: 368003
11:24
How to Analyze an Income Statement Like a Hedge Fund Analyst
This video covers how to analyze an income statement. How to analyze financial statements is one of the most crucial elements of fundamental investing. In parti...
This video covers how to analyze an income statement. How to analyze financial statements is one of the most crucial elements of fundamental investing. In particular, an income statement consists of a company's revenues (sales), its expenses and ultimately the company's profits. This video is an introduction to financial statement analysis for beginners.
After watching this video you will have a better understanding of the following questions:
How to value a stock, How to analyze a stock, how to analyze financial statements, how to analyze financial statements of a company, how to analyze an income statement and balance sheet.
Go to https://pblc.co/center and you will receive a free stock worth from $3 to $300 once you open and account and make a deposit.
Link to Investor Center Patreon where I post all the tools and resources I personally used to grow my portfolio to $300,000 at 24 years old:
https://www.patreon.com/user?u=38414104
https://wn.com/How_To_Analyze_An_Income_Statement_Like_A_Hedge_Fund_Analyst
This video covers how to analyze an income statement. How to analyze financial statements is one of the most crucial elements of fundamental investing. In particular, an income statement consists of a company's revenues (sales), its expenses and ultimately the company's profits. This video is an introduction to financial statement analysis for beginners.
After watching this video you will have a better understanding of the following questions:
How to value a stock, How to analyze a stock, how to analyze financial statements, how to analyze financial statements of a company, how to analyze an income statement and balance sheet.
Go to https://pblc.co/center and you will receive a free stock worth from $3 to $300 once you open and account and make a deposit.
Link to Investor Center Patreon where I post all the tools and resources I personally used to grow my portfolio to $300,000 at 24 years old:
https://www.patreon.com/user?u=38414104
- published: 28 Dec 2021
- views: 371424
16:00
Understanding Financial Statements | Reading Financial Statements
Reading Financial Statements | Corporate Finance Institute®
View full playlist: https://www.youtube.com/playlist?list=PLl3-0Xe_motTmt8KU8PQdt2URdOzBFRuX
Copyri...
Reading Financial Statements | Corporate Finance Institute®
View full playlist: https://www.youtube.com/playlist?list=PLl3-0Xe_motTmt8KU8PQdt2URdOzBFRuX
Copyright © 2015 – 2020, CFI Education Inc. All Rights Reserved.
Enroll in the full course to earn your certification and advance your career: https://courses.corporatefinanceinstitute.com/courses/learn-to-read-financial-statements-free-course
Learn how to read financial statements. In this free course, we use a company's financial statements and annual report to understand the financial strength of a company and help us make informed decisions. We learn how to read the balance sheet and its related notes using a company case study, Espresso Software. This will help us understand the financial strength of the company and help us make informed decisions. We'll also look at the company's income statement and statement of cash flows and conclude by covering the key contents of an annual report.
-- About Corporate Finance Institute® --
CFI is a world-leading provider of online financial analyst certification and training programs and the FMVA® designation. CFI’s financial modeling courses, programs, and certifications have been delivered to tens of thousands of individuals around the world to help them become world-class financial analysts. The financial analyst certification program begins where business school ends to teach you job-based skills for corporate finance, investment banking, corporate development, treasury, financial planning and analysis (FP&A), and accounting. CFI courses have been designed to make the complex simple by distilling large amounts of information into an easy-to-follow format. Our training will give you the practical skills, templates, and tools necessary to advance your career and stand out from the competition.
Learn about the FMVA® Certification Program: https://corporatefinanceinstitute.com/certifications/financial-modeling-valuation-analyst-fmva-program/
Explore CFI courses: https://courses.corporatefinanceinstitute.com/collections
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https://wn.com/Understanding_Financial_Statements_|_Reading_Financial_Statements
Reading Financial Statements | Corporate Finance Institute®
View full playlist: https://www.youtube.com/playlist?list=PLl3-0Xe_motTmt8KU8PQdt2URdOzBFRuX
Copyright © 2015 – 2020, CFI Education Inc. All Rights Reserved.
Enroll in the full course to earn your certification and advance your career: https://courses.corporatefinanceinstitute.com/courses/learn-to-read-financial-statements-free-course
Learn how to read financial statements. In this free course, we use a company's financial statements and annual report to understand the financial strength of a company and help us make informed decisions. We learn how to read the balance sheet and its related notes using a company case study, Espresso Software. This will help us understand the financial strength of the company and help us make informed decisions. We'll also look at the company's income statement and statement of cash flows and conclude by covering the key contents of an annual report.
-- About Corporate Finance Institute® --
CFI is a world-leading provider of online financial analyst certification and training programs and the FMVA® designation. CFI’s financial modeling courses, programs, and certifications have been delivered to tens of thousands of individuals around the world to help them become world-class financial analysts. The financial analyst certification program begins where business school ends to teach you job-based skills for corporate finance, investment banking, corporate development, treasury, financial planning and analysis (FP&A), and accounting. CFI courses have been designed to make the complex simple by distilling large amounts of information into an easy-to-follow format. Our training will give you the practical skills, templates, and tools necessary to advance your career and stand out from the competition.
Learn about the FMVA® Certification Program: https://corporatefinanceinstitute.com/certifications/financial-modeling-valuation-analyst-fmva-program/
Explore CFI courses: https://courses.corporatefinanceinstitute.com/collections
-- JOIN US ON SOCIAL MEDIA --
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YouTube: https://www.youtube.com/c/Corporatefinanceinstitute-CFI
- published: 15 Apr 2020
- views: 135295
53:39
FINANCIAL REPORTING-Understanding the Cash Flow Statement
FINANCIAL REPORTING-Understanding the Cash Flow Statement
In this video, we dive deep into the Cash Flow Statement, one of the essential financial statements ...
FINANCIAL REPORTING-Understanding the Cash Flow Statement
In this video, we dive deep into the Cash Flow Statement, one of the essential financial statements used in financial reporting. Learn how to interpret and analyze cash flows from operating, investing, and financing activities.
CALL US 0793555000
https://wn.com/Financial_Reporting_Understanding_The_Cash_Flow_Statement
FINANCIAL REPORTING-Understanding the Cash Flow Statement
In this video, we dive deep into the Cash Flow Statement, one of the essential financial statements used in financial reporting. Learn how to interpret and analyze cash flows from operating, investing, and financing activities.
CALL US 0793555000
- published: 03 Aug 2024
- views: 88
13:40
THE INTERPRETATION OF FINANCIAL STATEMENTS (BY BENJAMIN GRAHAM)
Support the channel by getting The Interpretation of Financial Statements by Benjamin Graham here: https://amzn.to/2LrTbq5
As an Amazon Associate I earn from ...
Support the channel by getting The Interpretation of Financial Statements by Benjamin Graham here: https://amzn.to/2LrTbq5
As an Amazon Associate I earn from qualified purchases.
Fundamental analysis & value investing 101. This video presents the 5 greatest takeaways from Benjamin Graham’s classic, The Interpretation of Financial Statements.
A playlist that will help you in mastering Benjamin Graham’s art of Value Investing: http://bit.ly/2Txvxgd
Top 5 takeaways from Benjamin Graham’s The Interpretation of Financial Statements:
00:00 Intro
02:04 1. Understanding the Income Statement and the Balance Sheet
05:13 2. Industry Specifics
07:53 3. Watered Stocks
09:35 4. The Liquidation Value of a Firm
11:29 5. Expected Returns of the Quantitative Investor
TL;DW:
- Know thy income statement and balance sheet
- Ratios are useful when considering the fundamentals of a company, but beware. If the numbers are healthy or not depends on the industry.
- It’s quite common that stocks are “watered” to look like they perform better than they actually do
- If a stock is priced lower than its current book value, the intelligent investor should take a closer look. This, could be a great value investing opportunity
- To achieve maximum portfolio returns, the value investor should do both a quantitative and qualitative analysis of his stock market investments
My goal with this channel is to help you make more money and improve your personal finances. How to become a millionaire? There are many ways to get there – investing in the stock market, becoming a stock trader, doing real estate investing, or why not becoming an entrepreneur? But whether you are interested in how to invest in stocks or investing strategies for creating passive income with rental properties – I hope to be able to provide you with a solution (or at least an idea) here. Warren Buffett - the greatest investor of our time - says that you should fill your mind with competing ideas and then see what makes sense to you. This channel is about filling your mind with those ideas. And in the process – upgrading your money-making toolbox.
https://wn.com/The_Interpretation_Of_Financial_Statements_(By_Benjamin_Graham)
Support the channel by getting The Interpretation of Financial Statements by Benjamin Graham here: https://amzn.to/2LrTbq5
As an Amazon Associate I earn from qualified purchases.
Fundamental analysis & value investing 101. This video presents the 5 greatest takeaways from Benjamin Graham’s classic, The Interpretation of Financial Statements.
A playlist that will help you in mastering Benjamin Graham’s art of Value Investing: http://bit.ly/2Txvxgd
Top 5 takeaways from Benjamin Graham’s The Interpretation of Financial Statements:
00:00 Intro
02:04 1. Understanding the Income Statement and the Balance Sheet
05:13 2. Industry Specifics
07:53 3. Watered Stocks
09:35 4. The Liquidation Value of a Firm
11:29 5. Expected Returns of the Quantitative Investor
TL;DW:
- Know thy income statement and balance sheet
- Ratios are useful when considering the fundamentals of a company, but beware. If the numbers are healthy or not depends on the industry.
- It’s quite common that stocks are “watered” to look like they perform better than they actually do
- If a stock is priced lower than its current book value, the intelligent investor should take a closer look. This, could be a great value investing opportunity
- To achieve maximum portfolio returns, the value investor should do both a quantitative and qualitative analysis of his stock market investments
My goal with this channel is to help you make more money and improve your personal finances. How to become a millionaire? There are many ways to get there – investing in the stock market, becoming a stock trader, doing real estate investing, or why not becoming an entrepreneur? But whether you are interested in how to invest in stocks or investing strategies for creating passive income with rental properties – I hope to be able to provide you with a solution (or at least an idea) here. Warren Buffett - the greatest investor of our time - says that you should fill your mind with competing ideas and then see what makes sense to you. This channel is about filling your mind with those ideas. And in the process – upgrading your money-making toolbox.
- published: 24 Mar 2019
- views: 520924
30:28
Financial Statements Explained | Balance Sheet | Income Statement | Cash Flow Statement
🚀 𝗦𝗶𝗴𝗻 𝘂𝗽 𝗳𝗼𝗿 𝗢𝘂𝗿 𝗖𝗼𝗺𝗽𝗹𝗲𝘁𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗲 𝗧𝗿𝗮𝗶𝗻𝗶𝗻𝗴 𝘄𝗶𝘁𝗵 𝟱𝟳% 𝗢𝗙𝗙 ➡️ https://bit.ly/3SPJ29y
The three main financial statements are:
• The Income Statement
• The Balan...
🚀 𝗦𝗶𝗴𝗻 𝘂𝗽 𝗳𝗼𝗿 𝗢𝘂𝗿 𝗖𝗼𝗺𝗽𝗹𝗲𝘁𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗲 𝗧𝗿𝗮𝗶𝗻𝗶𝗻𝗴 𝘄𝗶𝘁𝗵 𝟱𝟳% 𝗢𝗙𝗙 ➡️ https://bit.ly/3SPJ29y
The three main financial statements are:
• The Income Statement
• The Balance Sheet
• The Cash Flow Statement
These statements serve as the foundation for understanding a company's financial health, offering insights beyond the reach of basic accounting knowledge. What is the main goal of a business?
The primary goal of any business is to make a profit. Without profit, a company cannot sustain operations, pay employees, fulfill obligations to suppliers, or manage daily expenses. Eventually, unprofitable businesses face bankruptcy.
The Income Statement plays a pivotal role in this narrative by detailing a company's financial performance over a specific period. Also known as the Profit and Loss Statement (P&L), it offers a clear view of the revenue earned and expenses incurred, culminating in the net earnings or loss. This document is indispensable for stakeholders seeking to gauge a company's profitability and potential for sustained growth.
Yet, the journey from profit to liquidity is not always straightforward. The timing of income and expenditures can skew the immediate availability of cash, leading to discrepancies between a healthy profit margin and actual cash on hand. This is often a result of payment terms that allow for delayed transactions, both in receiving payments from clients and settling accounts with suppliers.
To navigate these waters, the Cash Flow Statement emerges as a crucial tool. It meticulously tracks the flow of cash in and out of the business, offering a transparent view of the company's liquidity. Sales may boost the figures on the Income Statement, but it's the cash transactions that determine a company's ability to meet its immediate financial obligations.
Equally significant is the Balance Sheet, which provides a snapshot of the company's financial standing at a given moment. By listing assets, liabilities, and shareholders' equity, it paints a comprehensive picture of the company's financial health and operational stability.
This document ensures that the assets procured through the company's operations are balanced against the liabilities and equity, adhering to the principle that assets must always equal the sum of liabilities and equity.
In essence, the Income Statement, Balance Sheet, and Cash Flow Statement offer a multi-dimensional perspective on a company's financial health. Each statement contributes unique insights, forming a comprehensive understanding of the firm’s financial position and its ability to sustain operations, pursue growth, and navigate the challenges of the financial landscape.
We’ll continue to share tutorial videos to help you on your journey to landing your dream job. Please 𝗹𝗶𝗸𝗲, 𝘀𝗵𝗮𝗿𝗲, 𝗮𝗻𝗱 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝘁𝗼 𝘁𝗵𝗲 𝟯𝟲𝟱 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗔𝗻𝗮𝗹𝘆𝘀𝘁 𝗖𝗵𝗮𝗻𝗻𝗲𝗹 if you find this video helpful.
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https://wn.com/Financial_Statements_Explained_|_Balance_Sheet_|_Income_Statement_|_Cash_Flow_Statement
🚀 𝗦𝗶𝗴𝗻 𝘂𝗽 𝗳𝗼𝗿 𝗢𝘂𝗿 𝗖𝗼𝗺𝗽𝗹𝗲𝘁𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗲 𝗧𝗿𝗮𝗶𝗻𝗶𝗻𝗴 𝘄𝗶𝘁𝗵 𝟱𝟳% 𝗢𝗙𝗙 ➡️ https://bit.ly/3SPJ29y
The three main financial statements are:
• The Income Statement
• The Balance Sheet
• The Cash Flow Statement
These statements serve as the foundation for understanding a company's financial health, offering insights beyond the reach of basic accounting knowledge. What is the main goal of a business?
The primary goal of any business is to make a profit. Without profit, a company cannot sustain operations, pay employees, fulfill obligations to suppliers, or manage daily expenses. Eventually, unprofitable businesses face bankruptcy.
The Income Statement plays a pivotal role in this narrative by detailing a company's financial performance over a specific period. Also known as the Profit and Loss Statement (P&L), it offers a clear view of the revenue earned and expenses incurred, culminating in the net earnings or loss. This document is indispensable for stakeholders seeking to gauge a company's profitability and potential for sustained growth.
Yet, the journey from profit to liquidity is not always straightforward. The timing of income and expenditures can skew the immediate availability of cash, leading to discrepancies between a healthy profit margin and actual cash on hand. This is often a result of payment terms that allow for delayed transactions, both in receiving payments from clients and settling accounts with suppliers.
To navigate these waters, the Cash Flow Statement emerges as a crucial tool. It meticulously tracks the flow of cash in and out of the business, offering a transparent view of the company's liquidity. Sales may boost the figures on the Income Statement, but it's the cash transactions that determine a company's ability to meet its immediate financial obligations.
Equally significant is the Balance Sheet, which provides a snapshot of the company's financial standing at a given moment. By listing assets, liabilities, and shareholders' equity, it paints a comprehensive picture of the company's financial health and operational stability.
This document ensures that the assets procured through the company's operations are balanced against the liabilities and equity, adhering to the principle that assets must always equal the sum of liabilities and equity.
In essence, the Income Statement, Balance Sheet, and Cash Flow Statement offer a multi-dimensional perspective on a company's financial health. Each statement contributes unique insights, forming a comprehensive understanding of the firm’s financial position and its ability to sustain operations, pursue growth, and navigate the challenges of the financial landscape.
We’ll continue to share tutorial videos to help you on your journey to landing your dream job. Please 𝗹𝗶𝗸𝗲, 𝘀𝗵𝗮𝗿𝗲, 𝗮𝗻𝗱 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲 𝘁𝗼 𝘁𝗵𝗲 𝟯𝟲𝟱 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗔𝗻𝗮𝗹𝘆𝘀𝘁 𝗖𝗵𝗮𝗻𝗻𝗲𝗹 if you find this video helpful.
► Visit our website: https://bit.ly/46xFPzd
▶ Follow us on LinkedIn: https://www.linkedin.com/company/68850993
▶ Follow us on Facebook: https://www.facebook.com/365financialanalyst
▶ Follow us on Instagram: https://www.instagram.com/365financialanalyst/
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#365financialanalyst #careerinfinance #careerpath #finance #financialplanningandanalysis #learnfinance #cfaexam #cpa #frm #cfp #learn365
- published: 16 Feb 2024
- views: 140516