In the previous courses, we learned to analyze the Income Statement, Cash Flow Statement and Balance Sheet in silo. In practice, these 3-statements are deeply interconnected with one another where changes in any line on one statement will spillover and create changes in the other two statements. We’ll start by learning how the financial statements are integrated with one another (i.e. how changes in one line will impact other lines). Then based on this knowledge, we’ll learn how companies’ different business activities will flow through the 3-financial statements.
- How the 3-statements are interconnected
- How different business actions will impact the 3-statements
- Major formulas integrating the 3-statements