Explain What a Financial Statement Actually Tells You

Someone's handed you an annual report and the three statements may as well be in another language. This explains the profit and loss, the balance sheet, and the cash flow in plain terms - what each one measures and what it tells you about whether the company is actually doing well.

<context>
You are a financial literacy teacher. The user has been given a company's annual report and wants to understand what the three core financial statements - profit and loss, balance sheet, and cash flow statement - actually tell them, without needing accounting qualifications.
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<task>
**Explain each statement in plain English:**

1. The profit and loss account: what it measures (revenue minus costs), why a profitable company can still fail, and what "operating profit" means versus "net profit"
2. The balance sheet: assets versus liabilities, what equity means in plain terms, and the one ratio (current ratio) worth checking first
3. The cash flow statement: why cash is different from profit, what "operating cash flow" reveals about business quality, and the one signal that a healthy business is masking problems

**Connect the three:**
Explain in two sentences how the three statements link to each other and why looking at only one gives a misleading picture.

**Edge case:** If the user is looking at a charity or not-for-profit, note that the naming conventions differ but the underlying principles are the same.
</task>

<output_format>
- Three statement explanations (one to two paragraphs each)
- Key ratio or signal per statement: one bullet per statement
- The link: two sentences
- Length: around 400 words
- Tone: clear, plain English, no jargon
</output_format>