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Financial Statements Explained | Balance Sheet | Income Statement | Cash Flow Statement
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The three main financial statements are:
โข The Income Statement
โข The Balance Sheet
โข The Cash Flow Statement
These statements serve as the foundation for understanding a company’s financial health, offering insights beyond the reach of basic accounting knowledge. What is the main goal of a business?
The primary goal of any business is to make a profit. Without profit, a company cannot sustain operations, pay employees, fulfill obligations to suppliers, or manage daily expenses. Eventually, unprofitable businesses face bankruptcy.
The Income Statement plays a pivotal role in this narrative by detailing a company’s financial performance over a specific period. Also known as the Profit and Loss Statement (P&L), it offers a clear view of the revenue earned and expenses incurred, culminating in the net earnings or loss. This document is indispensable for stakeholders seeking to gauge a company’s profitability and potential for sustained growth.
Yet, the journey from profit to liquidity is not always straightforward. The timing of income and expenditures can skew the immediate availability of cash, leading to discrepancies between a healthy profit margin and actual cash on hand. This is often a result of payment terms that allow for delayed transactions, both in receiving payments from clients and settling accounts with suppliers.
To navigate these waters, the Cash Flow Statement emerges as a crucial tool. It meticulously tracks the flow of cash in and out of the business, offering a transparent view of the company’s liquidity. Sales may boost the figures on the Income Statement, but it’s the cash transactions that determine a company’s ability to meet its immediate financial obligations.
Equally significant is the Balance Sheet, which provides a snapshot of the company’s financial standing at a given moment. By listing assets, liabilities, and shareholders’ equity, it paints a comprehensive picture of the company’s financial health and operational stability.
This document ensures that the assets procured through the company’s operations are balanced against the liabilities and equity, adhering to the principle that assets must always equal the sum of liabilities and equity.
In essence, the Income Statement, Balance Sheet, and Cash Flow Statement offer a multi-dimensional perspective on a company’s financial health. Each statement contributes unique insights, forming a comprehensive understanding of the firmโs financial position and its ability to sustain operations, pursue growth, and navigate the challenges of the financial landscape.
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Financial Astrology and 2026 Market Predictions with Susan Gidel
Let’s welcome Susan Gidel, financial astrologer to the podcast Cosmic Compass!
In this lively astrology chat, we talk about how to read your financial story based on your birth chart, how to invest using your own astrology as well as future predictions involving the housing markets, stock markets, the Federal Reserve and inflation themes in astrology.
I recently had an astrology reading with Susan and it was incredible! Highly recommend a reading!
Susan’s website: https://susangidel.com/
Susan’s newsletter (highly recommend!): https://susangidel.com/red-letter-trading-days-newsletter/
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ABOUT HELENA WOODS
Hey there, I’m Helena! I’m a passionate Hellenistic astrologer and astrocartographer, in love with reflecting light into our human experience. Originally from San Diego, I now call France my home on my Venus line. I’m here to give grounded guidance on astrocartography, after having lived around the globe and studied astro maps since 2018. Currently traveling the world full-time as I do astrocartography work, I also teach on the subject in my locational astrology course programs, and I offer personalized one on one readings in locational astrology. Since opening my consultations in 2021, I’ve helped over 2,500 kindred spirits find their best places in the world. I’ve been featured in The Economist, Elle Magazine, Conde Naste Traveller, Business Insider, The Times, Pop Sugar, Buzz Feed, The Astrology Podcast, Well + Good and have taught over 1,000 students in my courses.
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Era Istrefi – Mani Per Money
Era Istrefi – Mani Per Money
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CRUMBLING CRYPTO: Bitcoin is now nearly down 50% from all-time highs
FG Nexus Digital Assets CEO Maja Vujinovic discusses what’s causing the cryptocurrency sell-off on ‘Mornings with Maria.’ #foxbusiness #morningswithmaria
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Bajaj Housing Finance: Good Time To Enter ?? Complete Analysis !!
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Iโm NOT Expecting A New Bitcoin ATH (If This Happens Next)
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This video offers a detailed bitcoin analysis, explaining why the bitcoin price may not reach a new all time high in the next cycle. We examine the current state of bitcoin today and discuss potential future market movements. Stay tuned for important bitcoin news and insights into the crypto market.
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Bitcoin has seen a substantial decline, with a recent bitcoin crash that pushed the bitcoin price to $60,000, representing a 52% drop from its all-time high. This video offers a detailed bitcoin analysis, explaining how we arrived at this point and what the future may hold for btc today. Stay tuned for important bitcoin news and some positive signals for the market. 18-year cycle explained along with stock markets, metals and the mag-7 stocks like AAPL, AMZN, NVDA, TSLA, META, GOOG and MSFT.
This video offers a detailed bitcoin analysis, explaining why the bitcoin price may not reach a new all time high in the next cycle. We examine the current state of bitcoin today and discuss potential future market movements. Stay tuned for important bitcoin news and insights into the crypto market.
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Financial Modelling | One Shot | Part 1 | CA, MBA Finance, IB, FM, B.Com
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