The Stanford Video Guide to Financial Statements


Learn common-sense ways to get the most out of your financial statements with this accounting video.

Want to get more out of financial reports? This entertaining story gives you a revealing look at the accounting standards that dictate how calculations are made, and the assumptions that can make a surprising difference to your bottom line.

Stanford professor George Parker provides both line-by-line explanations of the three key financial statements used by US companies, and offers logical, common-sense approaches to interpreting what they reveal about profitability, value, and the ability to pay bills.

The Balance Sheet
  • What does this company own?
  • How much debt is it carrying?
  • How much money have investors put in?

The Income Statement

  • What is the sales volume?
  • What kind of expense is the company incurring?
  • How much money is the company earning?
  • Which income figure should I look at: operating income, income before interest and taxes, or net income?

The Cash Flow Statement

  • Will this company be able to pay its bills?
  • Where's their cash flow coming from?

In this accounting video, you'll follow along as Dr. George Parker tracks the progress of Jill and Perry, non-financial managers assigned to evaluate the financial statements of two restaurants their company has targeted for acquisition. Learn not just textbook definitions, but real world meanings and business consequences.

The Stanford Video Guide to Financial Statements

George Parker

Professor, Stanford Graduate School of Business


59 Minutes

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"This is an excellent learning tool. The restaurant scenarios and comparisons were clear and well-explained. Tips and suggestions on balance sheet / income statements were given that will help me remember more in the future... The story line was well-done, so kept my interest in what otherwise could just be an overwhelming amount of numbers."Jami Krause

Newport, VT

"Very easy to follow and helpful. I liked how major accounting principles were presented."Aaron Carriker

Cross Mfg., Inc.
Overland Park, KS