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Course 121 · Money course 12

Read Business Financial Statements

Turn a set of company reports into a clear explanation of performance, cash and unanswered questions.

Before you start

Comfort with percentages and subtraction; bookkeeping is helpful but not required.

See everything you’ll need

Practice materials and a worked example · Free download. Download the starter pack

What you’ll leave with

A checked financial brief with statement scope, margins, cash reconciliation, liquidity ratios, note questions and a spending recommendation.

Start course Start without an account. Sign in to save lesson progress across devices.

Your project

Start with the practice files. Build your project one lesson at a time.

Practice files are free without an account. Sign in to save your project record in My Proof: a description, checklist, and optional work link. Keep the original files in your own app or notebook; saving a project record does not upload them.

  1. Get your materialsDownload practice filesStart with the supplied materials, follow the lessons, and compare your work with the annotated example.
  2. Make your projectView the project checklist Work in your own notebook, document, or software. Use the supplied practice examples when you prefer.
  3. Keep a private recordSave a project record Sign in to save a description and checklist, then return to update them.
Optional course overview

Watch an introduction.

This overview from Edspira introduces ideas you’ll practice in the lessons.

Watch directly on YouTube
EdspiraHow the Income Statement and Balance Sheet are Connected | ExampleYouTube
Course handbook

Know the route before you begin.

Here’s what you’ll need and what you’ll make. You can return to this guide during any lesson.

Who this is for

For learners ages 14+ and adults exploring practical money and business skills.

Prepare before lesson one
  • Comfort with percentages and subtraction; bookkeeping is helpful but not required.
  • Use paper and a calculator, or a free spreadsheet/text editor. The written lessons contain all required records. Optional video and software setup are extra time.
Your final project

Finish with proof you can use.

A checked financial brief with statement scope, margins, cash reconciliation, liquidity ratios, note questions and a spending recommendation.

Save a project record in My Proof
See project checklist and review criteria

Keep your working files in your own notebook or software. Save a private description, checklist, and work link in My Proof.

What to include

  • A dated statement map with checked balance-sheet totals.
  • A two-year gross and operating margin comparison. A profit-to-cash bridge that reconciles to closing cash.
  • A liquidity note with working capital and two coverage ratios.
  • A note-review log with quantified risks and follow-up questions.
  • A one-page financial brief supporting a conditional spending decision.

Review and revise

Use these criteria to check your work and choose what to improve.

  • Calculations reconcile to the supplied records, with units and dates labeled.
  • Assumptions and missing information are visible, including the changed scenario.
  • The recommendation follows the evidence and explains an important limitation.
  • The six lesson outputs form a usable handoff that another learner can check.
Three ideas to help you along the way
Three useful ideas

The rules behind the steps.

01

Match scope

Compare the same periods and units.

02

Connect reports

Profit and cash describe different parts of the same activity.

03

Keep questions visible

A ratio is a clue to investigate, not a verdict.

What do these words mean?
Key words

Key terms worth knowing.

Revenue
Sales recognized for the reporting period.
Gross margin
Gross profit divided by revenue.
Operating cash flow
Cash generated or used by operating activity.
Working capital
Current assets minus current liabilities.
Liquidity
Ability to meet cash obligations when due.
Your route

6 lessons.
One useful project.

Work in order the first time. Each lesson makes something the next lesson can use.

  1. 1
    Up next

    Check what the report covers

    A dated statement map with checked balance-sheet totals.

  2. 2
    30 min

    Explain where profit changed

    A two-year gross and operating margin comparison.

  3. 3
    30 min

    Reconcile profit and operating cash

    A profit-to-cash bridge that reconciles to closing cash.

  4. 4
    30 min

    Compare near-term resources and obligations

    A liquidity note with working capital and two coverage ratios.

  5. 5
    30 min

    Test the story against the notes

    A note-review log with quantified risks and follow-up questions.

  6. 6
    30 min

    Make a balanced business recommendation

    A one-page financial brief supporting a conditional spending decision.

Use the tools

Tools to help you practice.

See all tools
ZIP · practice files

Read Business Financial Statements practice files

Start with the supplied materials, follow the lessons, and compare your work with the annotated example.

Text worksheet

Your course project worksheet

A downloadable text worksheet with each lesson’s working output, space for your answers, and the shared final-project checklist. Save your own copy.

Source transparency

Sources and further study.

Explore the references behind the lessons and take your learning further. Source notes explain access and reuse.

Beginners’ Guide to Financial Statement
Source & access notes · checked 2026-09-12

Inspected statement definitions, operating cash flow, notes, margins and working capital.

Access: Public page inspected without a sign-in; linked services may have separate requirements.

Reuse: Link to the original. Free reading does not imply permission to reproduce the page; lessons and fixtures here are original.

Financial Statement Analysis for Non-Accountants
Source & access notes · checked 2026-09-12

Inspected purposes, comparison methods and ratio analysis.

Access: Public article inspected; linked HBS programs are paid and are not required.

Reuse: Link to the original. Free reading does not imply permission to reproduce the page; lessons and fixtures here are original.

How to Determine the Financial Health of Your Company
Source & access notes · checked 2026-09-12

Inspected linked statements and ratio interpretation.

Access: Public article inspected; no enrollment required.

Reuse: Link to the original. Free reading does not imply permission to reproduce the page; lessons and fixtures here are original.

Financial Accounting Video Index
Source & access notes · checked 2026-09-12

Inspected the exact linked statement video and verified its title/channel through oEmbed.

Access: Public page inspected without a sign-in; linked services may have separate requirements.

Reuse: Link to the original. Free reading does not imply permission to reproduce the page; lessons and fixtures here are original.

Ready when you are

Start with the first useful move.

You’ll always know what to do, what to make, and where to go next.

Start lesson one