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Lemonade Stand Grows into a Nationwide Company

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Finance for Absolute Beginners

  • Format: Self-paced
  • Course Duration: 1 hr 0 mins
  • SHRM Professional Development Credits: 1.0
  • HRCI Business Recertification Credits: 1.0
  • Certificate of Completion (after passing quiz)

It’s the beginning of the day and you’re just settling into your first leadership team meeting. The CFO is about to review the organization’s financial report. You’re familiar with a few of the terms but you think to yourself, “I am not a numbers person”. Here’s the good news, you can be! This course is designed for HR professionals with no or limited financial background. The overall goal is to gain a better understanding of business and financial concepts to help build a foundation for becoming a strategic business partner.

It’ll cover the interpretation of important sections on financial statements in a simple and understandable way…by running your own lemonade stand!

It’ll also help you identify what drivers impact the organization’s performance and how you, in HR, influence those results. Take this course to become more comfortable with numbers, learn the basics and have some fun!

HR Jetpack is recognized by SHRM to offer Professional Development Credits (PDCs) for SHRM-CP or SHRM-SCP. This program is valid for 1.0 PDCs for the SHRM-CP or SHRM-SCP. For more information about certification or recertification, please visit

This activity, has been approved for 1.0 HR (Business) recertification credit hours toward aPHR™, PHR®, PHRca®, SPHR®, GPHR®, PHRi™ and SPHRi™ recertification through HR Certification Institute® (HRCI®). For more information about certification or recertification, please visit the HR Certification Institute website at
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Title: Lemonade Stand Grows into a Nationwide Company
Module: Conclusion
Duration: 3:39

Let’s imagine that our Lemonade Stand business grows into a nationwide company with professionally made lemonade stands offering fresh lemonade and snacks in theme parks and at sport events all over the country. You have a corporate office, a leadership team and, of course, your HR team. Let’s take a look at your financial statements and try to interpret them.

This is an example of more typical financial statements.Now that we know what goes into key sections on the financial statements we can explain that. Let’s try.

Sales. This is what we sold in a form of our products: lemonade and other beverages.

Cost of Goods Sold. It includes cost of raw materials and supplies and labor that we incurred to make the lemonade and beverages we sold.

Expenses. Very often the main category of expenses is S, G and A. It stands for Selling, General and Administrative Expenses. These expenses include all of the administrative staff, office supplies, phone and utilities, marketing and advertising and other similar expenses.

Cash. Most often it represents a bank account balance. It reflects a balance in the bank at the end of the specified period and it is comprised off cash ins and outs of all cash involving transactions. 

Accounts Receivable. This account shows the amount customers owe us at the end of the specified period. It is comprised off what we sold on credit and customer payments that we received.

Inventory. It is the balance of value of raw materials, supplies and finished goods inventory. It is comprised of purchases of supplies and raw materials, any work in progress (unfinished goods that are not ready for sale), balance of finished goods that is ready to be sold) and what we actually sold.

Accounts Payable. This number shows the balance we owe to our vendors or suppliers. It is comprised of what we purchased without payment at the time of purchase and what we actually paid back to the vendors.

Retained Earnings represent accumulated net income since the inception of the business.

We do not need to memorize finance, if we apply understanding of how our business works, we will be able to interpret key sections of the financial statement and key financial metrics.

Here I invite you to pause, think and write down what is reflected under key sections of the Income Statement in your organization. You can refer to the work you did in the very beginning of this course where you identified what your organization sells, who your customers are, what you need to have in place to sell what you sell and who your suppliers are.

Please take a moment to think and write down what goes under each section of the income statement in your organization. 






Instructor: Anna Samorukova

Anna designs and delivers learning and change facilitation experiences that speak to the learner and inspire people and organization reach for potential and create an impact with. She applies engaging, immersive, simulation- and game-based methodology and developments in neuroscience, psychology and concepts of motivation to learning design and change...

Anna's Full Bio

SHRM Recertification

HR Jetpack® is an official SHRM Education Partner recognized by SHRM to offer Professional Development Credits (PDCs) for SHRM-CP or SHRM-SCP.

HRCI Recertification

HR Jetpack® is recognized by HRCI as an approved provider to offer credit hours towards aPHR™, PHR®, PHRca®, SPHR®, GPHR®, PHRi™ and SPHRi™ recertification.

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