Income Statement
INCOME STATEMENT FORMATS There are multiple formats of income statements which are used by different organizations for reporting. Income statements are often accompanied by statement of retained earnings. Following section…
Income Statement
UNDERSTANDING BUSINESS METRICS CAPTURED ON INCOME STATEMENTS Income Statements capture numerous business metrics which can be used by shareholders' and other stakeholders to determine the financial health of an organization.…
Statement of Cashflow
INTRODUCTION TO CASHFLOW STATEMENT A separate document for reporting cash flows is required because of accrual basis accounting being used by most of the corporate companies for financial reporting. Under…
Statement of Cashflow
PREPARING OF CASHFLOW STATEMENT Cash flow statement for an organization is derived from its balance sheet and Income statement. In this article, we will be demonstrating preparation of cashflow statement…
Statement of Cashflow
PREPARING OF CASHFLOW STATEMENT (Contd ...) Cash flow statement for an organization is derived from its balance sheet and Income statement. In this article, we will be demonstrating preparation of…
Statement of Cashflow
SUMMARY FOR PREPARING CASHFLOW STATEMENT Summary of our entire discussion resulting in the preparation of Cashflow Statement is presented in this article.To re-iterate, preparing Statement of Cashflow requires us to…
Statement of Cashflow
RELATIONSHIP BETWEEN STATEMENT OF CASHFLOW & BALANCE SHEET Cash & cash equivalents at the end of the year as derived from a cashflow statement must be equal to the organization's…
Capital Budgeting
NET PRESENT VALUE The concept is used widely by professionals for valuing liabilities and monetary assets. It is also used as a useful tool for evaluating proposals related to long…
Capital Budgeting
OTHER METHODS OF ANALYSIS So far, we discussed Net Present Value (NPV) concept for evaluating capital investment projects. There are two alternative concepts as well which analysts often use to…
Financial Statements
PREPARING FINANCIAL STATEMENTS In this section, we will attempt to prepare all three financial statements (Income statement, balance sheet & Statement of cash flow) from scratch using daily business transactions.The…