Topic 3
Financial Statements
An integrated reading of the income statement, balance sheet, and cash flow statement.
15 lessons · 78 minutes
☰ Contents
Lessons in Financial Statements
Open any lesson directly. The order is only a suggested learning path.
Financial Statements as a System
Understand how the main financial reports connect.
5 minutes
Revenue and Growth
Read the top line of the income statement.
5 minutes
Gross Profit and Gross Margin
Measure the basic economics of the product or service.
5 minutes
Operating Expenses and Operating Income
Evaluate operations before financing and taxes.
5 minutes
Net Income and EPS
Understand total profit and the amount attributable to each share.
6 minutes
Assets, Liabilities, and Equity
Understand the balance-sheet equation.
5 minutes
Cash, Receivables, and Inventory
Evaluate short-term assets.
5 minutes
Debt and Other Obligations
Read the company's financing structure.
5 minutes
Shareholders' Equity and Book Value
Understand accounting equity.
5 minutes
Operating Cash Flow
Follow cash generated by core operations.
5 minutes
Investing Cash Flow and Capital Expenditures
Understand how cash is reinvested.
5 minutes
Financing Cash Flow
Understand debt, dividends, issuance, and repurchases.
5 minutes
Free Cash Flow
Use a useful metric while keeping its definition clear.
6 minutes
TTM, Annual, and Quarterly
Choose the correct period for the question.
5 minutes
Notes, 10-K, and 10-Q
Learn where to verify and deepen the analysis.
6 minutes