Learn how to analyze financial statements and reports. Master financial accounting fundamentals such as accrual accounting, the three main financial statements, and the metrics and ratios analysts use.

This course is taught using hands-on exercises from financial statements of well-known companies. We'll go through real-life examples, by walking through actual 10-K's to gain a better understanding of how the accounting concepts learned in this course apply to companies like Facebook, Amazon, and Apple.

Related Courses

These concepts are covered in our Financial Modeling Bootcamp.
You may also be interested in our Intro to Corporate Finance and Intro to Stock Market Investing courses.
To learn accounting and Quickbooks for bookkeeping see all of our accounting courses in NYC.

What You'll Learn

Financial accounting fundamentals, including cash versus accrual accounting and GAAP
Income statement line items and financial metrics
Balance sheet: Assets = Liabilities + Shareholder's Equity
Cash Flow Statement: Cash flows from operations, investing, and financing
How the financial statements tie together

The Income Statement

The income statement, also known as the profit and loss statement, includes the company’s revenues and expenses over a period of time. This is the simplest way to see if a company is making or losing money. An income statement starts with the company’s revenues which would include any sales generated from products or services and then subtracts the expenses of the company to ultimately reach a final profit number. An income statement can show a company’s profitability over a period of time, whether that is quarterly, annually, or any other time frame.

The main things you will generally see on an income statement:

Revenues: the sale of products or services
Cost of good sales (COGS): the direct cost associated with the delivery of those goods or services. For example, this would include the cost of parts of the phone as well as the labor costs associated with making the phone
Marketing expenses: expenses associated with advertising or sales to promote the company’s products or services
Research & development (R&D): the cost of testing, trialing, and creating new products
Selling, general & administrative (SG&A): corporate expenses such as management, salaries and incentives, corporate offices, and other expenses needed to run the company.
Interest expense: interest on debt that the company might have (bonds or loans)
Interest income: interest received on cash or investments that the company has
Income taxes: federal, state, local, and any additional income taxes owed from the profits of the business
Depreciation and amortization (D&A): a non-cash expense that represents the “spreading out” of larger investments. For example, a large purchase of a new machine for a factory would be depreciated over the course of many years. Different categorization of items will dictate how they are depreciated (i.e. the period of time).
Gross profit: the gross profit is calculated by taking revenue minus the cost of goods sold, which measures the company’s profit only accounting for the direct cost of goods
Operating income: calculate by taking revenue minus operating expenses, representing the company’s pre-tax income directly related to its operations
EBIDTA: commonly used profit metric, earnings before interest taxes, depreciation, and amortization
Net income: the company’s bottom line profit and loss, representing revenue minus all expenses

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What You'll Learn

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Hands-on Training in small groups

Workbook Included

Learn from industry experts with teaching experience

Retake the course for free within one year

Setup Assistance Provided

Full Course Syllabus

Introduction to Financial Accounting

Income Statement

Balance Sheet

Cash Flow Statements

Schedule & Enrollment

Not currently scheduled.

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Frequently Asked Questions

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What is Financial Accounting?

The 3 Major Financial Reports

Where Can I find a Company’s Financial Reports?

Accounting Training Resources

The Income Statement

The Difference Between Cash and Accrual Accounting

Accrual Accounting

The Balance Sheet

Statement of Cash Flows

The Accounting Identity Formula

Related Classes

Financial Modeling Bootcamp

Stock Market Investing Fundamentals

Intro to Corporate Finance

Financial Analyst Training Program