[MUSIC] As I promised you in the beginning of the course, we are now well equipped to understand the financial statements of Zara. So let's start this task. [MUSIC] Welcome to the last week of Accounting: Making Some Decisions. If you made it to this point, this week is your opportunity to consolidate the basic accounting concepts you have learned so far. In particular, how to read and interpret financial statements for decision making. Namely, the balance sheet, the income statement, and the cash flow statement. We will not analyze them in isolation. On the contrary, we want to understand how they relate to each other. So that we can have a more complete picture of the performance of the business. At the same time, we need to understand the limitations of each one of the financial statements, what can they tell us and what they cannot tell us. Therefore, as important as the financial information we can extract form these financial statements are the questions that these financial statements will help us raise. So in this fourth week we are going to focus on the concept of accrual accounting, the method by which accounting recognizes economic events when they happen. No matter whether there is cash associated with that transaction or not. After understanding the implications of accrual accounting, we're going to analyze again the financial statements of the campus bookstore. But this time we're going to put together the two years of operations that we have, so that we can compare and study the evolution of the company. After that, we are going to reinterpret the financial statements of a real company that I already introduced in the beginning of the course. Finally I'm going to mention a few advanced accounting topics, so that you can explore them on your own. And we are going to conclude the course. So if you are ready, we are going to get started with the first part of this last week. Let's go. [MUSIC]