Check what the report covers
See this course’s project requirements
A checked financial brief with statement scope, margins, cash reconciliation, liquidity ratios, note questions and a spending recommendation.
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.
Want more background?
The idea in everyday life
Cedar Print has two year-end balance sheets and two full-year income statements. All figures are fictional dollars, not thousands. Use the table below; no outside company is needed.
A balance is measured at one date; income and cash flows cover a period. Compare matching units and periods.
Check what the report covers — worked practice
A balance is measured at one date; income and cash flows cover a period. Compare matching units and periods.
Cedar Print has two year-end balance sheets and two full-year income statements. All figures are fictional dollars, not thousands. Use the table below; no outside company is needed.
Cedar Print: year-end balances, dollars
Paste at A1.
| AItem | BYear 1 | CYear 2 |
|---|---|---|
| Cash | 2000 | 1500 |
| Receivables | 3000 | 4500 |
| Inventory | 5000 | 6000 |
| Equipment net | 10000 | 11000 |
| Current liabilities | 4000 | 5000 |
| Long-term liabilities | 6000 | 6000 |
| Equity | 10000 | 12000 |
Copy as plain text
1. Label scope
Write Year 1 and Year 2 year-end above the balance columns.
You should see: Both columns are point-in-time balances.
A snapshot cannot show a full year of sales.
2. Total assets
Add cash, receivables, inventory and net equipment for each year.
You should see: Assets are $20,000 and $23,000.
Every asset must be included once.
3. Check the equation
Add current liabilities, long-term liabilities and equity for each year.
You should see: Both sides equal $20,000 and $23,000.
A mismatch needs investigation before analysis.
4. Record limits
Write that sales and cash movements require separate full-year reports.
You should see: The balance sheet alone cannot establish annual profit.
Matching totals do not prove strong performance.
What to finish
A dated statement map with checked balance-sheet totals.
Watch for this
Treating a $23,000 year-end asset balance as yearly sales.
How can I tell I understand it?
Explain your calculation or classification and reproduce the changed case without copying the worked result.
Quick knowledge check
Answer all 3 questions. Get at least 2 right and the lesson completes automatically.
You’ll get an explanation for each answer. Signed in? Your results save to your account.
Pass the check. We’ll save the progress.
Answer all 3 questions above and get at least 2 right. You can review the explanations and try again.
Go to the knowledge checkOptional course overview video
How the Income Statement and Balance Sheet are Connected | Example
From Edspira. Watch here or open it on YouTube .
Optional course overview. Follow the written steps below at your own pace.Tools, templates, and lesson sources
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Sources and further reading
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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.
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.
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.
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