Basics of Finance 1: Are We Making A Profit?

Part of the Series: Accounting and Finance Collection

A light-hearted case study offering a clear guide to the financial ideas businesspeople need to grasp. Jay's business, designing websites and CDs, is doing well. But then he meets an old friend who's now an accountant. She gives him some tough lessons on the value of accounting knowledge and takes him through the basics of finance. Just because there's a lot of cash floating around in the business doesn't mean that this money is profit. How much of it is owed to his creditors? Maybe Jay's making money now, but what if there's a downturn in his main markets?