Foundations in Business Principles: Module 2

From Fear to Confidence

In this module, you will learn about two financial statements that businesses use to track their financial performance: the profit and loss statement and the balance sheet to better understand your cash flow statement. In “Navigating the Life Cycle of a Business) we introduce the life cycle of a business, from “in the hole” to profitable. Moving on to “Your Profit and Loss Statement” we discuss different sections of the P&L statement and how to use them to track performance and trends in your business.

Then in “Beyond the P&L” we cover the balance sheet, which is a snapshot of your business's financial position at a specific point in time. Lastly, in “Cash Flow is King” we explain the cash flow statement which shows how much cash your business is generating and using. By understanding these financial statements, you can track your business's performance, identify areas where you can improve, and make informed decisions about your future.

Learning Goals:

• Learn about the life cycle of a business and how to start trusting your business. 
• Understand your profit and loss statement while having the ability to identify healthy and unhealthy trends in your business’s performance. 
• Analyze your balance sheet to determine your business’s financial health.
• Learn how to pair your profit and loss statements with your balance sheet to understand your cash flow.