Cash Flow Balance Sheet Cash Accounts Receivable Inventory CURRENT ASSETS Fixed Assets: Gross Accum. Depreciation Net TOTAL ASSETS BISON INC. Liabilities Accounts Payable Salary Payable CURRENT LIABILITIES Long-Term Debt Total Liabilities Common Size Stockholder's Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities & Equity 2020 18,523 4,741 11,775 35,039 59,888 -22,200 37,688 72,727 1,856 2,051 3,907 8,620 12,527 15,000 45,200 60,200 72,727 2020 Common Size 2021 38,227 5,784 13,888 57.899 72,000 -26,854 45,146 103,045 1,350 1,500 2,850 10,200 13,050 25,000 64,994.872 89,994.872 103,044.872 2021 Common Size Income Statement Revenue COGS Gross Profit BISON INC. Depreciation Expense Expenses EBIT Interest EBT Tax Net Income Dividends Add to R/E 2021 120,566 68,990 51,576 4,654 17,855 33,721 2,400 31,321 6,577.41 24,743.59 4,948.718 19,794.872 2021 Common Size
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
The Statement of Financial Position -
The statement of financial position is the position of the assets as on the balance sheet date.
We will get use following formula -
For Accounts Receivable (Current Year Amount X 100% / Total Assets)
The Statement of Comprehensive Income -
The statement of comprehensive income is the profit earned and loss incurred in the period end.
If we evaluate the financial analysis of the statement of comprehensive income then we have to use the following formula -
Total Sales will be considered as 100% and other Income Statement items will compare the other Sales items with them.
We will get use following formula -
For Cost of goods sold (Cost of goods sold X 100% / Sales)
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