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@lawfully.bri: In case you saw my video about math during my 1L year…just know I’ll be doing math during 2L too. I promise it’s not scary though lol #lawschool #lawtok #lawstudent #lawstudentlife #lawschoollife
Bri👩🏾⚖️ | 2L⚖️
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Monday 07 September 2026 21:26:38 GMT
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Financial Statements: Explained To A Child Like this visual? Grab a FREE copy of my accounting ebook (link in bio) If you're in business, you MUST understand the 3 Financial Statements. Here's a quick overview: 📄 INCOME STATEMENT Main sections: 💰 REVENUE: Total Sales ➖ COST OF GOODS SOLD: The cost to deliver the product or service 💰 GROSS PROFIT: Revenue - Cost of Goods Sold ➖ OPERATING EXPENSES: All Overhead Costs 💰 OPERATING INCOME: Gross Profit - Operating Expenses ➖ OTHER INCOME: Money earned that is not core to the business 💰 PRE-TAX INCOME: Operating Income - Other Income ➖ INCOME TAX: Taxes paid to Governments 💰 NET INCOME: Pre-Tax Income - Income Tax 🔢 SHARES OUTSTANDING: The total number of shares a company has ➗ EARNINGS PER SHARE: Net Income / Shares Outstanding 👉 PURPOSE: Track Income & Expenses 🔀 SIMILAR TO: Your Monthly Budget ⏰ TIME: Period of Time 🔢 ACCOUNTING: Accrual 📄 𝐁𝐀𝐋𝐀𝐍𝐂𝐄 𝐒𝐇𝐄𝐄𝐓 3 Main Sections: 💰 ASSETS: What the company Owns 🔴 LIABILITIES: What the company Owes to creditors 🔵 EQUITY: The net value of the owner's claim ➗ FORMULA: Assets = Liabilities + Shareholder's Equity 👉 PURPOSE: Track what a company OWNS (assets) and OWES (liabilities) 🔀 SIMILAR TO: Your Net Worth statement ⏰ TIME: Point in Time Snapshot 🔢 ACCOUNTING: Accrual 📄 𝐂𝐀𝐒𝐇 𝐅𝐋𝐎𝐖 STATEMENT 3 Main sections: 💰 CASH FROM OPERATING ACTIVITIES All of the cash flows from activities related to operating the business 💰 CASH FROM INVESTING ACTIVITIES The cash movements from long-term assets 💰 CASH FROM FINANCING ACTIVITIES The cash from all equity investments and debt from the company 👉 PURPOSE: Track Cash Movements 🔀 SIMILAR TO: Your Checking Account ⏰ TIME: Period of Time 🔢 ACCOUNTING: Cash Follow @brianferoldi for more content like this #accounting #accountingstudent #finance #finance101 #investing #investingforbeginners
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