The Analyst's Path

Reading company accounts, India and US

Follow one credit sale through all three statements

This is the first thing the course teaches, done in full, in rupees and in dollars. Flip the currency and check the maths yourself. The course has 228 modules and they're all free.

Currency of the worked example

The worked example, in rupees and in dollars

A distributor ships ₹12,00,000 of goods on 60-day credit. The goods cost ₹7,50,000. No cash changes hands this month.

Income statement

This transaction only

Income statement, this transaction only, in rupees
Revenue₹12,00,000
Cost of goods sold(₹7,50,000)
Profit before tax₹4,50,000
Income tax at 25%, accrued(₹1,12,500)
Net incomeflows to retained earnings₹3,37,500

Balance sheet

Change from the transaction

Balance sheet, change from the transaction, in rupees
Trade receivables₹12,00,000
Inventory(₹7,50,000)
Cashnothing was collected₹0
Total assets₹4,50,000
Tax payable₹1,12,500
Retained earningsfrom net income₹3,37,500
Total liabilities and equity₹4,50,000

Cash flow statement

Indirect method, change

Cash flow statement, indirect method, change, in rupees
Net income₹3,37,500
Increase in receivables(₹12,00,000)
Decrease in inventory₹7,50,000
Increase in tax payable₹1,12,500
Cash from operations₹0
Net change in cashties to the cash line₹0
  • Where the profit wentNet income of ₹3,37,500 is the only thing that moved retained earnings.
  • Both sides moved by the same amountAssets rose ₹4,50,000; liabilities and equity rose ₹4,50,000.
  • Profit, but no cash yetOperations produced ₹0 of cash, which is what the cash line says.

25% is the base corporate rate for a domestic company under ₹400 crore of turnover, before surcharge and cess. The tax has been accrued but not paid yet, so it sits in liabilities this month. The figures only show what this one sale changed.

What's in it

in numbers
Modules228
Flashcards7,330
Quiz items6,727
Case labs103
Auto-graded code exercises243
Excel labs20
Skill tracks4

There are four tracks: 168 Finance, 22 Consulting, 20 Excel and 18 Presentation modules.

Indian and US companies don't file the same way, which is why the examples come in both currencies and you learn to read both. The app runs in your browser.

How a module works

a few hours per module
  1. 01

    Read the module

    Each module is a long read, with the numbers worked out as you go.

  2. 02

    Pass the gate

    The gate is a quiz at the end, and the next module only opens once you clear it. You need 85%, or 90% on the capstone modules. Fail it and the module comes back to you for another go.

  3. 03

    Review on a schedule

    Every module adds flashcards to your review deck, and we bring each one back just as you're about to forget it (that's spaced repetition). A new card comes back roughly 10 times over the next year.

  4. 04

    Apply it

    There are 103 case labs on real filings and 243 auto-graded code exercises. Then there's the investing simulator, where every trade asks for a written thesis, and we score how you made each call, not whether the portfolio went up.

Start here, no account needed

Phase 0 · 12 modules
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