Because it is not really a 201 class. Finance 102 Because it is not really a 201 class.

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Income Statement

Revenue Product Services - COGS = Gross Margin - Sales & Marketing Expenses - General expenses - Administrative Expenses = EBITDA/Net Income

Balance Sheet

Assets Short Term Long Term Liabilities Shareholder Equity

Things to watch – Income Statement Revenue Gross Margin Dollars Sales Expense G&A Expense

Things to watch – balance sheet A/R A/P Current Ratio (Current Assets/Current Liabilities) Quick Ratio (Cash + A/R / Current Liabilities) Debt to Equity Ratio (Liabilities/Shareholders Equity)

Cash Flow Statement

Cash Flow from Operating Activities Cash flow from Investing Activities Cash Flows from Financing Activities

Operating Activities Cash From Customers + Sales (Revenue) Beginning Accounts Receivable Ending Accounts Receivable Cash payments to Suppliers + Purchases + Ending Inventory Beginning Inventory + Beginning Accounts Payable - Ending Accounts Payable Cash Payments to Employees + Beginning Salaries Payable Ending Salaries Payable + Salaries Expense

Operating Activities Interest Payments Payments on Prepaid Assets + Beginning Interest Payable Ending Interest Payable + Interest Expense Payments on Prepaid Assets + Ending prepaid rent, insurance, etc. + Expired Rent, Expired Insurance, etc. - Beginning Prepaid Rent, Prepaid Ins. Etc. Income Tax Payments + Beginning Income Tax Payable - Ending Income Tax Payable + Income Tax Expense

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