How the 3 Financial Statements Connect Together

➡️ Download the infographic and Excel File here!

The 3 Financial Statements are the core of any business. Actually it's the most valuable thing you can learn in business. Knowing they connect can make you learn how to read the, and take better decision. In this video, I explain how the Income Statement, the Balance sheet, and the Statement of Cash Flows all connect together.

⏱️ TIMESTAMPS
0:00 Intro
0:17 What are the Financial Statements
0:59 What is the Profit and Loss
1:27 The Balance Sheet
1:54 The Statement of Cash Flows
2:22 How the Financial statements are connected
5:32 How The Balance Sheet connects to the Statement of Cash Flows
6:02 A textbook example of how it all works
7:53 Financing Activities
8:52 Recap

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#Threfinancialstatements #CashFlows #BalanceSheet #profitandloss #Financials #Accounting #accountingprofessionals #Tutorial #yourcfoguy

[fjom]

Jesus, This explanation is incredibly insightful and truly resonates with my three years of study in the finance industry. Thank you for simplifying such complex concepts with clarity and depth. Your expertise is invaluable and greatly appreciated!

Please maybe next time Can you explain why Net Income is much easier get 'manipulated' that cashflow ?

[amospan]

Amazing visuals and super clear explanation of 3 statements! Thank you Josh, I appreciate you! =)

[ponycatty]

I just started my first year as a Finance major last week, and for some reason I'm struggling to wrap my head around which financial actions fall under which label (non-current vs current, financial vs operational, etc) and how they relate to each other when determining missing values in a financial statement. I'm definitely coming back to this video.

[Mario-suh]

Best explanation on YouTube so far. Now I can play around with the numbers on the excel file and see how the numbers on each statement respond to that input. THANKYOU bro

[mrgodliker]

For a kindergarten business, are teachers considered COGs given that we needed the teachers to generate value

[JRFV]

Super good till the end. The end was a bit too rushed