The Statement of Cash Flows: How to Read Financial Statements Like a Pro (Part 3)
A Crash Course in Balance Sheets, Income Statements, and Statements of Cash Flows Hello friends! The wait is finally over. Today we’ll be diving into part 3 of 3 of our financial statement analysis miniseries. In this module, we’ll be learning all about the statement of cash flows. I know you’re excited as I am! And for those of you who missed it, check out Part 1 of the miniseries: The Balance Sheet and Part 2 of the miniseries: The Income Statement. Let’s dive in! Part 3: The Statement of Cash Flows There are three sections to the Statement of Cash Flows: 1) cash flows from or used by operating activities; 2)…
How to Read Financial Statements Like a Pro (Part 1)
A Crash Course in Balance Sheets, Income Statements, and Statements of Cash Flows Recently, it occurred to me that many readers may not be familiar with the basic financial statements. As a practicing accountant and someone who’s been fortunate enough to receive an education from the country’s top-tier business schools, I am admittedly a little too familiar with them. Although I won’t bore you with the details of actually preparing these statements, it’s imperative for any investor to understand how to read financial statements on a basic level prior to committing his or her funds to a stock purchase. I’ll break my analysis into a 3-part miniseries. Part 1 will…