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

2. Questions?

3. Income Statement

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

5. Balance Sheet

6. Assets Short Term Long Term Liabilities Shareholder Equity

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

8. 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)

9. Cash Flow Statement

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

11. 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

12. 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

13. Questions?