CACHO,CIELO GRACE A.

KYLA JANE POLISTICO

Financial statements (or financial reports) are formal records of

the financial activities and position of a business, person, or
other entity Relevant financial information is presented in a
structured manner and in a form which is easy to understand.
They typically include four basic financial statements
accompanied by a management discussion and analysis.
• A balance sheet or statement of financial position, reports on a
company's assets, liabilities, and owners equity at a given point
in time.
• An income statement—or profit and loss report (P&L report),
or statement of comprehensive income, or statement of revenue
& expense—reports on a company's income, expenses, and
profits over a stated period. A profit and loss statement provides
information on the operation of the enterprise. These include
sales and the various expenses incurred during the stated period.
• A statement of changes in equity or statement of equity, or
statement of retained earnings, reports on the changes in equity
of the company over a stated period.
• A cash flow statement reports on a company's cash flow
activities, particularly its operating, investing and financing
activities over a stated period.
• A comprehensive income statement involves those other
comprehensive income items which are not included while
determining net income.

To see what these statements look like, start with the financial
data from ABC Corp. Using this information, you can figure out
how to prepare several examples of financial statements: Sales:
$3,200,000 Cost of goods sold: $1,920,000 Gross Profit:
$1,280,000 Administrative overhead: $875,000 Profit before
interest and taxes: $405,000 Interest: $32,000 Taxes: $128,00
Depreciation: $57,000 Net profits: $188,000 Cash: $60,000
Accounts receivable: $357,000 Inventory: $530,000 Fixed
assets: $1,200,000 Total assets: $2,147,000 Accounts payable:
$385,000 Short-term bank loans: $130,000 Long-term debt:
$550,000 Equity: $1,082,00