OUR STATEMENT OF FINANCIAL NEEDS
There are three primary financial statements: The balance sheet, incomestatement and statement of cash flow. Each one of these statements isequally important in communicating the existing or projected financialhealth of the recycling business. These statements are prepared at theend of the financial year to assist our business to consistently establish,meet goals and objectives.
1.The major category in this statement are revenues and expenses2.Both revenue and statement are to be recorded in the year theyare earned or expensed, not when the actual cash is paid or received
Revenues: sales revenue, service revenue, and interest revenue4.Expenses: salaries of executives, staff salaries, R&D expenses,bad debt expense, depreciation for the current year expense,interest expense, and income tax expense
CASH FLOW STATEMENT:
1.This financial statement deals with the cash transactions of thebusiness in a financial year.2.Each period for which the cash flow statement is prepared beginswith a beginning cash balance (which may be zero).
Examples: any revenue received in cash is added and expensespaid in cash are subtracted. The only transactions which arerecorded in this statement are those which have been made inCASH.