Financial

Statement
-Group 8-
 Warm up
 Are the statement true (T) or false (F)?

1. Machinery is current asset

Answer: F
2. An increase in an asset accompanies with an increase in
revenue
Answer: T
3. Business has overdraft so it is an asset
Answer: T
 Financial statement

01 Balance sheet 02 Cash flow statement

03 Income statement 04 Summary

 01
Balance sheet
 1. Definition:

Balance sheet: Provides

detailed information about
company’s assets, liabilities
and capital at a fixed point
in time.
3 specific items of balance sheet

Asset Liability Shareholder’s equity

 ASSET

Definition Types
Assets are divided into 2 type: CA and
a resource with economic
NCA. In NCA (or can be call fixed
value that the company owns
asset), they continue to be divided into:
or controls with the
-Tangible assets
expectation that it will
- Intangible asset
provide a future benefit.
 LIABILITY

Definition Types
A liability is something the There are 2 types of liabilities:
company owes, usually a sum CL (short - term) and NCL
of money. Liabilities are (long -term)
settled over time by
transferring economic
benefits including money,
goods, or services.
 Shareholder’s equity

It is the total amount of money

that would be returned to its
shareholders if the company is
liquidated after all debts are
paid off.
 Formula

ASSETS = LIABILITIES + SHAREHOLDERS’ EQUITY

 Set up the
balance sheet
 02
Income
statement
INCOME STATEMENT
Definition: An income statement is
a report that shows how much
revenue a company earned over a
specific time period (usually for a
year or some portion of a year).
 How to set up income statement?
1. gross revenues or 5. “Gross profit” or 9. Interest income
sales “Gross margin” and interest
expense
2. Money the 6. operating expenses
company doesn’t 10. Net profit or net
expect to collect 7. Depreciation and losses
on certain sales amortization
11. Earnings per share
3. Net revenue 8. Income from (or EPS)
operations
4. the costs of the
sales
 Examples of
income statement
- The illustration comprehensively
shows the different levels of
profitability of XYZ Corporation.
 Examples of
income statement

Amazon’s consolidated
statement of operations, or
income statement, for the
years ended December 31,
2015 – 2017.
 03
Cash flow
statement
 Definition
- Cash flow statements report a
company’s inflows and outflows of cash,
tell you whether the company generated
cash. It shows changes over time rather
than absolute dollar amounts at a point in
time.
- The bottom line shows the net increase
or decrease in cash for the period.
 Three main parts of a cash flow statement

Operating activities: Investing activities: Financing activities:

analyzes a company’s shows the cash flow shows the cash flow
cash flow from net from all investing from all financing
income or losses. activities activities

1 2 3
Neptune is far
away from us
Example of cash
flow statement

Phạm Băng Tâm

 SUMMARY
Income Cash flow
Balance sheet statement statement
- Providing detailed - reports how a company - Reporting a
information about performed during a company’s inflows and
company’s assets, specific period of time. outflows of cash
liabilities and capital at a
fixed point in time
- Showing changes over
- Three main factors: - Main factors: revenue time rather than absolute
assets, liabilities, and expenses. dollar amounts at a point in
equities time.
 Thanks for listening!

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