How the Statements Work Together

in Chapter 1 (Video 8 of 8)

9 minutes

All these statements... How do they work together? Where do I start? It's not terribly complicated. Let me show you.

This Video Mentioned Some Formulas

Assets = Liabilities + Shareholder's Equity (Or Owner's Equity)

Beginning RE

+ Net Income

– Dividends

Ending RE

Revenues

– Expenses

Net Income

Operating Cash Flows

+ Investing Cash Flows

+ Financing Cash Flows

Net Increase (Decrease) in Cash

+ Beg Balance Cash

Ending Cash Balance

1	The Accounting Equation	3:02
2	Assets vs Liabilities	5:32
3	Shareholder's Equity	5:26
4	The Balance Sheet	5:52
5	The Statement of Retained Earnings	5:51
6	The Income Statement	6:19
7	The Statement of Cash Flows	6:02
8	How the Statements Work Together You are here.	9:02

	Click Here to View All Chapter 1 Problems at Once	View
1	Matching Basic Vocabulary	Easy
2	Account Classifications	Moderate
3	Solving for Net Income	Moderate
4	Tying the Statements Together	Moderate
5	Solving for Retained Earnings	Hard