Read a P&L and a balance sheet. Know cash from profit.
Every class teaches one idea, asks you three questions on it and then puts it to work on a real company.
A P&L reads top to bottom, and every line takes something away from the one above it.
Margin divides by price. Markup divides by cost. Ask which one someone means.
Assets equal liabilities plus equity. If it doesn't balance you've read it wrong.
Working capital is the cash gap between what you own and what you owe this year.
When profit and cash disagree the answer is timing. Find what was paid before it was counted.
Item 7 for the story. Item 8 for the numbers. Skip the rest until you need it.
Operating is running it. Investing is building it. Financing is who paid for it.
Cash first and revenue later is deferred revenue. It's the liability you want.
Stock growing faster than sales is the earliest warning you'll get.
Receivables are sales waiting for cash. Payables are cash you're holding for someone else.
A ratio means nothing alone. Compare it to a peer or to last year.
The statements say what. The notes say how. The auditor says whether to believe it.
Every figure below was checked against the SEC's XBRL record of the company's Form 10-K on Sep 7 2026. The check column says which API concept it came from. Figures in millions of US dollars unless stated.
| Company | Period | Figure | Value ($M) | Concept checked |
|---|---|---|---|---|
| Apple | FY ended Sep 30 2023 | Total net sales | 383,285 | RevenueFromContractWithCustomerExcludingAssessedTax |
| Apple | FY2023 | Gross margin | 169,148 | GrossProfit |
| Apple | FY2023 | Total cost of sales | 214,137 | derived: 383,285 minus 169,148 |
| Apple | FY2023 | Products net sales / cost | 298,085 / 189,282 | from the 10-K income statement. Sums reconcile to the checked totals |
| Apple | FY2023 | Services net sales / cost | 85,200 / 24,855 | from the 10-K income statement. Sums reconcile to the checked totals |
| Apple | Sep 30 2023 | Total current assets | 143,566 | AssetsCurrent |
| Apple | Sep 30 2023 | Total current liabilities | 145,308 | LiabilitiesCurrent |
| Apple | Sep 24 2022 | Total current assets / liabilities | 135,405 / 153,982 | AssetsCurrent, LiabilitiesCurrent |
| Costco | FY ended Sep 3 2023 | Total revenue | 242,290 | Revenues |
| Costco | FY2023 | Net sales | 237,710 | from the 10-K. Reconciles: 242,290 minus 4,580 |
| Costco | FY2023 | Membership fees | 4,580 | from the 10-K. Reconciles with checked total revenue |
| Costco | FY2023 | Merchandise costs | 212,586 | CostOfGoodsAndServicesSold |
| Costco | FY2023 | Net income | 6,292 | NetIncomeLoss |
| Netflix | FY2023 | Net income | 5,408 | NetIncomeLoss |
| Netflix | FY2023 | Net cash from operating activities | 7,274 | NetCashProvidedByUsedInOperatingActivities |
| Netflix | FY2019 | Net income | 1,867 | NetIncomeLoss |
| Netflix | FY2019 | Net cash from operating activities | (2,887) | NetCashProvidedByUsedInOperatingActivities |
| Apple | FY2023 | Net income | 96,995 | NetIncomeLoss |
| Apple | FY2023 | Net cash from operating activities | 110,543 | NetCashProvidedByUsedInOperatingActivities |
| Apple | FY2023 | Payments for property plant and equipment | 10,959 | PaymentsToAcquirePropertyPlantAndEquipment |
| Apple | FY2023 | Payments for share repurchases | 77,550 | PaymentsForRepurchaseOfCommonStock |
| Apple | FY2023 | Payments of dividends | 15,025 | PaymentsOfDividends |
| Apple | Sep 30 2023 | Deferred revenue current | 8,061 | ContractWithCustomerLiabilityCurrent |
| Apple | Sep 30 2023 | Accounts receivable | 29,508 | AccountsReceivableNetCurrent |
| Apple | Sep 30 2023 | Accounts payable | 62,611 | from the 10-K balance sheet. Reconciles to checked current liabilities total |
| Apple | Sep 30 2023 | Shareholders' equity | 62,146 | StockholdersEquity |
| Apple | Sep 30 2023 | Total assets | 352,583 | Assets |
| Apple | Sep 30 2023 | Total liabilities | 290,437 | Liabilities |
| Apple | Sep 30 2023 | Non-current assets | 209,017 | derived: 352,583 minus 143,566 |
| Apple | Sep 30 2023 | Non-current liabilities | 145,129 | derived: 290,437 minus 145,308 |
| Costco | Sep 3 2023 | Inventories | 16,651 | InventoryNet |
| Costco | Aug 28 2022 | Inventories | 17,907 | InventoryNet |
| Costco | FY2022 | Total revenue | 226,954 | Revenues |
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