Report

Financial Statement

 Balance Sheet, Income Statement, Cash Flow.

Financial Statement

Financial statements are written records that convey the business

activities and the financial performance of a company.

Yung financial statement ang nagsisilbing guide ng isang company on

their financial health or condition for a given period of time and at a given
period of time. Ayon nga gaya ng sinabi ko yung financial statement ang
nagproprovide ng information or data sa financial performance ng
company, yung current condition nila and kung saan napupunta or saan
nagamit yung cash nila or simply we can call cash flow.

I will discussed the three sections of financial statement which are balance
sheet, income statement and cash flow.

Balance Sheet
The balance sheet provides an overview of a company's assets, liabilities,
and shareholders' equity as a snapshot in time
Asset

 An asset is a resource with economic value that an individual,

corporation, or country owns or controls with the expectation that it will
provide a future benefit.

An asset is a resource with an economic value. Individuals, corporation

country expects their own asset to provide economic benefits now and to
 the future. Assets can be tangible like equipment, and land. Or intangible
like brand names. Assets is vital to firms success because they increase
their value and provide the means to generate cash flow.
Company list assets they own is under the balance sheet a firm total asset
is equal to Liabilities and OE.
Assets is a great interest to investors to know what the firm owns and
what it owes.
Current Asset ( Consume within a year)
 Cash and cash equivalents 
 Accounts receivables
 Inventory
Non-current Asset ( is expected to provide beyond a year)
 Property, plant, and equipment
Assets are a great interest to investors to know what the firm owns and
what it owes.
Liabilities
 Accounts payable
 Wages payable - An asset is a resource with economic value that an
individual, corporation, or country owns or controls with the expectation
that it will provide a future benefit.
 Notes payable
 Long-term debt
Shareholders Equity

 Retained earnings 

Income statement
 the income statement covers a range of time, which is a year for annual
financial statements and a quarter for quarterly financial statements. The
income statement provides an overview of revenues, expenses, net income,
and earnings per share.
Revenue
 Operating revenue is the revenue earned by selling a company's
products or services
 Non-operating revenue is the income earned from non-core
business activities.
Expenses
 Primary expenses are incurred during the process of earning revenue
from the primary activity of the business
 Expenses that are linked to secondary activities include interest paid on
loans or debt.

The main purpose of the income statement is to convey details of profitability

and the financial results of business activities; however, it can be very
effective in showing whether sales or revenue is increasing when compared
over multiple periods.
Investors can also see how well a company's management is controlling
expenses to determine whether a company's efforts in reducing the cost of
sales might boost profits over time.

Cash Flow Statement

The cash flow statement (CFS) measures how well a company generates
cash to pay its debt obligations, fund its operating expenses, and fund
investments. 

it contains three sections that report cash flow for the various activities for
which a company uses its cash.
Operating Activities  
 include any sources and uses of cash from running the business and
selling its products or services.
These transactions also include wages, income tax payments, interest
payments, rent, and cash receipts from the sale of a product or service.
Investing Activities
 include any sources and uses of cash from a company's investments in
the long-term future of the company.
A purchase or sale of an asset, loans made to vendors or received from
customers, or any payments related to a merger or acquisition is included in
this category.
Financing Activities
  Includes the sources of cash from investors or banks, as well as the
uses of cash paid to shareholders.
Financing activities include debt issuance, equity issuance, stock
repurchases, loans, dividends paid, and repayments of debt.

What Are the Benefits of Financial Statements?

Financial statements show how a business operates. It provides insight into
how much and how a business generates revenues, what the cost of doing
business is, how efficiently it manages its cash, and what its assets and
liabilities are. Financial statements provide all the detail on how well or poorly
a company manages itself.

The Bottom Line

Financial statements are the ticket to the external evaluation of a company's
financial performance. The balance sheet reports a company's financial
health through its liquidity and solvency, while the income statement reports a
company's profitability. A statement of cash flow tie these two together by
tracking sources and uses of cash. Together, financial statements
communicate how a company is doing over time and against its competitors.