Courses / Integrated Financial Statements

Integrated Financial Statements

18 Lessons | 1 Quiz

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.

Key Takeaways:

  • How the 3-statements are interconnected
  • How different business actions will impact the 3-statements
  • Major formulas integrating the 3-statements

Lessons

1. What is Integrated Financial Statements

2:26

The 3 financial statements are highly integrated with one another where any change to one statement will affect the other two statements.

2. How the Three Statements are Interlinked

15:31

In this lesson, we'll go through each statement and show how each line on the financial statements are interlinked with one another.

3. The Major Formulas

7:50

We'll learn the major formulas underpinning integrated financials that consist of components from all three financial statements.

4. Think Through Financials in Order

3:02

You should always think about the impact on the three statements in a structured order.

5. Amazon: Purchasing Supplies for Echo

2:23

In this lesson, we'll learn how businesses' purchase of supplies will flow through the three financial statements.

6. Amazon: Selling Echo

3:56

In this lesson, we'll learn how the three financial statements will be affected when a business provides the product and receives payment.

7. Amazon: Selling Amazon Prime Membership

4:37

In this lesson, we'll learn how the 3 statements will be affected when a business receives cash payment before providing the product.

8. Amazon: Selling Amazon Web Services

4:06

In this lesson, we'll learn how the 3 statements will be affected when a business provides the product before receiving cash payment.

9. Amazon: Hiring a Software Engineer

3:50

In this lesson, we'll learn how hiring additional employees will impact the three financial statements.

10. Amazon: Building a New Warehouse

2:17

In this lesson, we'll learn how building a new warehouse (or otherwise investing in new PP&E) will affect the three financial statements.

11. Amazon: Selling an Old Warehouse

2:19

In this lesson, we'll learn how a company divesting some of its assets will affect the three financial statements.

12. Amazon: Borrowing Debt

3:25

In this lesson, we'll learn how borrowing debt will impact the three financial statements.

13. Amazon: Financing Market Expansion with Debt

4:18

In this lesson, we'll explore the impact on the three financial statements when a company borrows debt to fund its expansion plans.

14. Amazon: Issuing Equity

1:38

In this lesson, we'll learn how raising capital from equity investors through issuing shares will affect the three financial statements.

15. Amazon: Repurchasing Shares

1:24

In this lesson, we'll learn how share repurchases will affect the three financial statements.

16. Amazon: Paying Dividends

1:20

In this lesson, we'll learn how paying dividends to shareholders will flow through the three financial statements.

17. Principles to Keep in Mind

2:44

As you think through how any commercial activity will impact the three statements, there are some key principles you need to bear in mind.

18. Connecting Dots

3:06

Let's understand why we need to develop an integrated understanding of financial statements and how this fits into investment analysis.