Make a balanced business recommendation
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 is considering a $1000 optional display purchase paid today. Closing cash is $1500. The manager’s fictional minimum cash rule is $1000. There is no confirmed new receipt before payment. Year 2 operating margin is 7%; overdue receivables total $1200.
A recommendation should connect a decision to several measures and explain what additional evidence would change it.
Make a balanced business recommendation — worked practice
A recommendation should connect a decision to several measures and explain what additional evidence would change it.
Cedar Print is considering a $1000 optional display purchase paid today. Closing cash is $1500. The manager’s fictional minimum cash rule is $1000. There is no confirmed new receipt before payment. Year 2 operating margin is 7%; overdue receivables total $1200.
1. Apply the decision rule
Subtract the optional purchase from current cash.
You should see: Cash would fall to $500, below the $1000 minimum.
Use a stated constraint rather than an invented universal benchmark.
2. Use supporting evidence
Select the cash result, margin trend from 10% to 7%, and overdue balance.
You should see: The brief contains three relevant pieces of evidence.
Sales growth alone does not resolve near-term cash risk.
3. Recommend a next step
Recommend postponing pending confirmed collections and a revised cash plan.
You should see: The recommendation is conditional, not a claim the business is insolvent.
A limited decision needs a proportionate conclusion.
4. Assemble the handoff
Combine scope, margins, cash bridge, liquidity and notes with your recommendation.
You should see: A reader can trace the recommendation to calculations and unknowns.
A complete brief includes both strengths and constraints.
What to finish
A one-page financial brief supporting a conditional spending decision.
Watch for this
Turning this operating analysis into a stock-buying recommendation.
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.
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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 · same video as Lesson 1
How the Income Statement and Balance Sheet are Connected | Example
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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 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.
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