Financial Statements Made Easy

Learn the basics of the Income Statement, Balance Sheet and Cash Flow Statement and understand how they fit together.
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Instructed by Alex Glassey Business / Finance
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  • Lectures 12
  • Length 35 mins
  • Skill Level Beginner Level
  • Languages English
  • Includes Lifetime access
    30 day money back guarantee!
    Available on iOS and Android
    Certificate of Completion
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About This Course

Published 6/2013 English

Course 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.

What are the requirements?

  • None.

What am I going to get from this course?

  • 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

Who is the target audience?

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

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.


Section 1: Introduction
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.
Section 2: The Income Statement
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.
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. 
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. 
Section 3: The Balance Sheet
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.
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.
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.
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.
Section 4: The Statement of Cash Flows
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.
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.
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.
Section 5: The Financial Statements, Integrated
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.

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Instructor Biography

Alex Glassey, Teacher, Speaker, Entrepreneur

Hi there! I'm a strategy and business prof who likes to keep things simple. I'm also an entrepreneur who's been through the wringer a time or two. See the grey hair? Yes, there's lots of it. Want to know why? Because each of these grey hairs came from a problem, an issue, a challenge in one of my companies. Well, some of them came from my two kids but that's a whole other story!

You know what I wish? I wish some grey-haired guy had shared his experiences with me 34 years ago when I started out as an entrepreneur. Would've saved me so much time and money. Except, I guess, there was no Internet back then. Or computers. Or Udemy. Oh well, never mind... :-)

My courses are all designed to help small business people. Each lesson is short - a minute or two, most of them - because who's got the time? Plus, I believe that short and simple is better. Oh, and they're free so you can just jump right in and get what you need.

Full disclosure: I also own StratPad, a software company that helps entrepreneurs create business plans. So some of the lessons have StratPad's logo on them. Hope you don't mind. Who knows, though? You just might need a business plan some day and then you can try StratPad for free.

Enjoy the lessons, I hope they help you, and feel free to tell me about your business adventures on Twitter and LinkedIn. I'd love to hear your stories!

All the best,


P.S. Here's some more details about me and my grey hair...

• serial entrepreneur working on 4th startup
• founder/designer of StratPad (cloud software that creates business plans for entrepreneurs)
• adjunct professor of business strategy and planning, Royal Roads University
• MBA from Kellogg School of Management, Northwestern University
• former "big-five" management consultant

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