Week 13 — Readings & Resources

Your primary reading is Chapter 13 (in this module). Everything below is the optional, go-deeper layer — pick what helps, skip the rest.

How to use this page

This page has 10 items (4 readings and 6 videos). Allow 65–73 minutes for everything. Each group links back to the matching chapter section and class-session segment, so use the full menu when you want more, or take the quick path below.

Every video here has captions: turn them on with the CC button in the player. The chapter covers the same ideas in text.

Pick-one quick path (19–21 min total)

• Understanding Financial Statements and Accounting: Crash Course Entrepreneurship #15 — CrashCourse
• Cash vs Profit: What's the Difference? — Two Teachers
• Financial ratios: what they are and how to use them — BDC

① Reading the three statements

Chapter 13, Section “Balance the start: the accounting equation” · Session 1, Segment 3, “Balance the start” · Remember: every balance sheet shows assets equal to liabilities plus owners' equity, to the dollar.

• Understanding Financial Statements and Accounting: Crash Course Entrepreneurship #15 — CrashCourse — an episode that tours the income statement, the balance sheet, and the cash flow statement; as you watch, name which statement is a snapshot and which two cover a span of time. Use it to preview the week before you open the Week-13 module overview. (video, 13 min) (captions: creator)
• How to Read a Balance Sheet — Xero Accounting Software — an accounting-software company's two-minute explainer on current and non-current assets and liabilities, owner's equity, and why the two sides balance; its line that every business must produce one each year states one country's rule, not general advice, and its closing pitch for its own software is an advertisement. Afterward, check the cart's opening-day balance sheet the same way. (video, 2 min) (captions: creator)
• BALANCE SHEET explained — The Finance Storyteller — an explainer that sorts a balance sheet into current and non-current assets, liabilities, and equity, then reads a large retailer's real sheet; focus on the categories, which match the chapter's current assets and current liabilities, and skip the company's own figures. (video, 9 min) (captions: creator)
• Understanding your balance sheet — business.govt.nz — a national government business site's guide to assets, liabilities, and equity, with the equation written both ways; read the sections on assets, liabilities, and equity, and skip the goodwill case study, which goes beyond this course. (reading, 7–9 min)

② Profit versus cash

Chapter 13, Section “Separate profit from cash” · Session 2, Segment 8, “Profit versus cash” · Remember: net income measures what the business earned, while the statement of cash flows shows where the cash actually went.

• Cash vs Profit: What's the Difference? — Two Teachers — a three-minute business-studies explainer on the difference between cash and profit; afterward, explain in your own words why the cart's cash rose less than its net income. (video, 3 min) (captions: automatic)
• Financial statements — Business Queensland — a state government business site's walk through the profit and loss statement, the balance sheet, and the cash flow statement with its operating, financing, and investing sections; read it for the three statements side by side, and note that it calls the income statement a profit and loss statement. (reading, 6–8 min)

③ Ratios from named lines

Chapter 13, Section “Compute four ratios: read the statements in a line each” · Session 2, Segment 9, “Four ratios” · Remember: name the two lines first, put the first-named line on top, then say the result in words.

• Net Profit and Gross Profit: Formulas, Margin Calculations and How to Interpret Figures Explained — Two Teachers — a business-studies walk-through of gross and net profit margins, from the formula to what the result says about a business. This builds on Week 7's margin on price, which matches the gross margin. (video, 8 min) (captions: creator)
• Current ratio explained — The Finance Storyteller — an explainer on current assets, current liabilities, and how to read a current ratio once you have it; skip the section comparing large real companies, and focus on the calculation and the reading. (video, 10 min) (captions: creator)
• Financial ratios: what they are and how to use them — BDC — a development bank's short article listing leverage, liquidity, profitability, and operations ratios; read the debt-to-equity, working capital ratio (its name for the current ratio), and net profit margin entries, and skip the rest. Stop at the debt-to-equity ratio: how a business chooses between borrowing and selling a share is next week's topic. (reading, 3–5 min)

Optional one-stop reference (free online reference)

• Manage your business: manage your finances — U.S. Small Business Administration — the federal small-business agency's guide, which this course returns to; read the parts on starting with a balance sheet and on picking a method of accounting, which shows why profit and cash can differ, and skip the rest of the section. (reading, 4–6 min)

Heads-up (links rot): these point to outside sites that occasionally move or rename pages. If a link ever fails, tell your instructor and use the reference above in the meantime.

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