Unit 3 Income statements

what is a Cash flow Statement?

• It tells you both the earnings and profitability of a business for a specific period of time.

• It tells whether the company can pay its bills on time, its financial flexibility to acquire capital and its ability to distribute cash in the form of dividends.

• It details the movement in stockholders’s equity over a period of time

• It tells you the sources and uses of cash during the period. It also tells about the company’s investing and financing activities during that period.

What is a Statement of Changes in Equity (Statement of Retained Earnings)?

• It tells you the sources and uses of cash during the period. It also tells about the company’s investing and financing activities during that period. Income statement

• It tells you both the earnings and profitability of a business for a specific period of time.

• It tells whether the company can pay its bills on time, its financial flexibility to acquire capital and its ability to distribute cash in the form of dividends.

• It details the movement in stockholders’s equity over a period of time Cash flow Statement

What is Statement of Financial position (Balance Sheet)?

• It tells you the sources and uses of cash during the period. It also tells about the company’s investing and financing activities during that period.

• It tells you both the earnings and profitability of a business for a specific period of time.

• It tells whether the company can pay its bills on time, its financial flexibility to acquire capital and its ability to distribute cash in the form of dividends.

• It details the movement in stockholders’s equity over a period of time

What is an Income statement?

• It tells whether the company can pay its bills on time, its financial flexibility to acquire capital and its ability to distribute cash in the form of dividends.

• It tells you both the earnings and profitability of a business for a specific period of time.

• It details the movement in stockholders’s equity over a period of time

• It tells you the sources and uses of cash during the period. It also tells about the company’s investing and financing activities during that period.

Goodwill

• Assets

• Equity and Liabilities

Short term borrowings

• Assets

• Equity and Liabilities

retained earnings

• Assets

• Equity and Liabilities

Trade receivables

• Assets

• Equity and Liabilities

Decline is a verb for:

• Downward movement

• Upward movement

• Stability

Surge is a verb for

• Downward movement

• Upward movement

• Stability