04 Financial Statements
In our course, we will work on the simpler ‘horizontal’ version of each financial statement.
Balance Sheet¶
| Liabilities | Amount | Asset | Amount |
|---|---|---|---|
Types¶
| Contains | |
|---|---|
| Standalone | Company |
| Consolidated | Company, |
Cashflow Statement¶
| Particular | Inflow | Outflow |
|---|---|---|
| Opening Balance | $120,000 | |
| Operating Activities | ||
| Sales | $400,000 | |
| Supplies | $9,000 | |
| Rent | $60,000 | |
| Salaries | $330,000 | |
| Investing Activities | ||
| Additional Equipment | $55,000 | |
| Financing Activities | ||
| 0 | ||
| Total Inflow | $400,000 | |
| Total Outflow | $454,000 | |
| Net Cashflow | -$54,000 | |
| Closing Balance | $66,000 |
Profit/Loss Statement¶
Also called as comprehensive Income Statement
| Operating View | Management View | |||||
|---|---|---|---|---|---|---|
| Amount | Amount | |||||
| + Sales | Direct | + Sales | Direct | |||
| - Cost of Goods Sold | Direct, Variable | - Cost of Goods Sold | Direct, Variable | |||
| Gross Margin | XXX | Gross Margin | XXX | |||
| - SG&A | Direct, Fixed | - Non-Operating Expenses | Indirect, Variable | |||
| CM1 (Contribution Margin) | ||||||
| CM2 | ||||||
| Operating Margin | XXX | CM3 | XXX | |||
| - Non-Operating Expenses | Indirect, Variable | - SG&A | Direct, Fixed | |||
| + Non-Operating Revenue | Indirect | + Non-Operating Revenue | Indirect | |||
| EBITDA | XXX | EBITDA | XXX | |||
| - Non-Operating Expenses | Indirect, Fixed | - Non-Operating Expenses | Indirect, Fixed | |||
| EBIT (Earnings before Interests and Tax) | XXX | EBIT (Earnings before Interests and Tax) | XXX | |||
| - Interest | - Interest | |||||
| - Other financing costs | - Other financing costs | |||||
| PBT (Profit before Tax) | XXX | PBT (Profit before Tax) | XXX | |||
| Provision for Tax | Provision for Tax | |||||
| Net Income | XXX | Net Income | XXX |
You only include the expenses used for the revenue generation.
Change in Equity Statement¶
Notes¶
Explanation notes of system you followed to obtain the above statements
2026-06-22