Lesson One — Overview covers the three financial statements. The student will learn the three main types of statements and what aspect of company operations each covers. Sections in this lesson include:

• Three Types of Statements
• Income Statement
• Balance Sheet
• Cash Flow Statement
• Review
• Quiz

In Lesson Two — Income Statement the student learns each item on an income statement and constructs a sample statement item by item. Sections include:

• Income Statement Definition
• Sales
• Cost of Sales
• Gross Margin
• Operating Expenses
• Depreciation and Amortization
• Operating Income
• Other Income and Expenses
• Income Before Taxes and Taxes
• Net Income and Completed Statement
• Quiz

In Lesson Three — Balance Sheet the student learns each item on a balance sheet and constructs a complete sample balance sheet item by item. Sections include:

• Balance Sheet Definition
• Assets
• Current Assets
• Property, Plant and Equipment
• Intangibles
• Liabilities
• Current Liabilities
• Working Capital
• Long Term Liabilities
• Owner's Equity
• Completed Statement
• Quiz

In Lesson Four — Cash Flow Statement the student learns each item on a cash flow statement and constructs a sample statement item by item. Sections include:

• Cash Flow Definition
• Sources and Uses of Cash
• Cash Flow from Operating Activities
• Cash Flow from Investing Activities
• Cash Flow from Financing Activities
• Net Cash Flow and Completed Statement
• Quiz

In Lesson Five — Linking the Statements the student will see how the items on the three different reports interrelate. The student will also learn an alternative format to the cash flow statement used in Lesson Four. Sections in this lesson include:

• Linking the Statement Items
• Sales and Accounts Receivable
• Cost of Sales and Inventory
• Inventory and Accounts Payable
• Operating Expenses and Accounts Payable
• Operating Expenses and Accrued Expenses
• Operating Expenses and Prepaid Expenses
• Property, Plant and Equipment and Depreciation
• Interest Expense and Accrued Expenses
• Income Tax Expense and Income Tax Payable
• Net Income and Retained Earnings
• Alternative Format for Cash Flow
• Quiz

In Lesson Six — Analyzing the Statements the student learns what the various financial ratios are and what they mean. These are the ratios used by investors, bankers, etc. in evaluating the relative financial strengths of a company. Sections include:

• What are Financial Ratios
• Income Statement Ratios
• Balance Sheet Ratios
• Cross Statement Ratios
• Analyzing the Statements
• Quiz

In Lesson Seven — Review and Final Exam the student reviews the course and takes a final exam to test the knowledge gained.