Connecting the Income Statement, Balance Sheet, and Cash Flow Statement

Every public company in the US has Three Financial Statements. Investors can link these financial statements to better make sense of the financial position of a business. This video explains how the Three Financial Statements connect (link).

Major Sections:
1. Income Statement
2. Profit/Loss
3. Cash Flow Statement
4. Depreciation/Amortization
5. Changes in Working Capital
6. Balance Sheet

PS I apologize for the nasally sound, I had Covid while recording this.

PLEASE LEAVE A LIKE AND SUBSCRIBE IF YOU ENJOYED!

[patrickw]

You do a better job explaining this in 7 minutes on 2x speed than four tenured professors teaching it for weeks lmao

[donwhizz]

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[PaYal-fjrg]

This was the thorughest and simplest way of understanding I was looking for ...thanks❤️

[jamesneishabouri]

This was such an awesome video and it helped clearly explain to my students how the balance sheet, cash flow statement, and income statement are connected! My recommendation would be that the video sound is a bit monotonous so some of the kids zoned out a bit, but besides that it was great!

[ianpatrick]

Great explanation of how the balance sheet, income statement, and cash flow all integrate

[jesbensommichael]

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[GusLuong]

Great explanation. Thank you for making it!

[anupamahazell]

Very effective visuals and explanation. I have to do financial.statements for the bank to open a business account. Very useful! Thank u for sharing!

[riyankusumo]

Thank you, this lesson is very valuable!

[adrianneschaus]

Wow first time I understood exactly what was going on, reading through financial statements is very boring but this was well explained and fast.

[zanderhuynh]

This is what I have been try to find ! Linking them all together! Can you make videos for all stock terminology ROIC, PS….

[PaYal-fjrg]

You should upload more videos ...these are very helpful

[maureenicolebien]

THANKYOUUUU SO MUCHHH BECAUSE OF YOUR VID I CAN ANSWER MY TASK OMG!! hehehe thankyouuu againnn

[carllong]

Superb summery explanations. Bravo. You should teach at harvard!

[jitenanand]

Need more visual Indicators on the figures while referring to a specific figure, without that it will be hard to follow the figures.

[evitanirmala]

How did u get the operating cash flow $11.000?

[invested]

I'm confused how investing cash flow has a $9000 outflow but PP&E only increases by 4500. Shouldn't these values match up?

[yfgrows]

Awesome videos!! Your channel needs more subs!!!

I've a question, base on Tim's cars Financials, would you invest in the company? and why?
I kinda understood the connection between the 3 sections, but how do we assess if the company is an investable asset base on it?

Thank you in advance!!

[CappyLoLD]

Replacing old equipment should increase PPE as well, since non-current assets are usually net of depreciation.

[aaroacademy]

Keep up this great work! Well explained.