Normally a financial report consist of 4 table
commonly look at 3 table only.
A) Balance sheet(start up capital)
B) Income statement(P&L)
C) Cash flow statement (identify cash on hands to pay debt and operate)
D) changes in Equity (no of ordinary share)
A) Balance sheet(start up capital)
This will be meaning on when you start up a biz, from founded until now recorded all time changes in Asset, liabilities and changes on Equities on your company.
Items appear in here Majority as below,
1) Current Asset - for time period less than 1 year.
2) Non Current Asset - for time period more than 1 year.
3) Current Liabilities - for period less than 1 year.
4) Non Current Liabilities - for period more than 1 year.
5) Equities - show the start up capital
Finally Asset = Liabilities + Equities.
B) Income statement(P&L)
This will show on the company operated at the certain of time have generate profit or loss.
Gross profit =Revenue - Cost.
But to remember it is just how the period of company operation at certain of time whether profit or loss. it is more towards assumption. as there might be having delay on payable and receivable due to credit term of the company.
This sheet need to be cross check with cash flow statement in order to verify its accuracy.
Normally Operation cash flow increase = Net profit increase.
C) Cash flow statement (identify cash on hands to pay debt and operate)
This is Most important sheet, as it tell correctly all the money inflow and outflow.
all the inflow and outflow need to have receipt base unlike P&L statement base on a assumption on a certain period of time.
Items on this sheer include.
i) Operation Cash Flow - this show the company actual earining from its operation. can verify with Net profit of Profit & Loss statement
ii) Investment Cash Flow - this show expenditure or earning from disposal of 1 time Asset or earning.to verify with balance sheet Asset side.
iii) Financial Cash Flow - this show either repaid in liabilities or divided to share holder. to verify with Balance sheet liabilities and Equities.
iv) Cash at start
v) Cash at the end
D) changes in Equity (no of ordinary share)
This show the changes in Equity from start raise capital until now.
if there is any bonus issue, right issue. dividend paid, distributed and non distributed or retain earning,
divided amount paid can be check from here. refer to Financial cash flow and P&L statement.
to be continue in details.
B) Income statement(P&L)
C) Cash flow statement (identify cash on hands to pay debt and operate)
D) changes in Equity (no of ordinary share)
A) Balance sheet(start up capital)
This will be meaning on when you start up a biz, from founded until now recorded all time changes in Asset, liabilities and changes on Equities on your company.
Items appear in here Majority as below,
1) Current Asset - for time period less than 1 year.
2) Non Current Asset - for time period more than 1 year.
3) Current Liabilities - for period less than 1 year.
4) Non Current Liabilities - for period more than 1 year.
5) Equities - show the start up capital
Finally Asset = Liabilities + Equities.
B) Income statement(P&L)
This will show on the company operated at the certain of time have generate profit or loss.
Gross profit =Revenue - Cost.
But to remember it is just how the period of company operation at certain of time whether profit or loss. it is more towards assumption. as there might be having delay on payable and receivable due to credit term of the company.
This sheet need to be cross check with cash flow statement in order to verify its accuracy.
Normally Operation cash flow increase = Net profit increase.
C) Cash flow statement (identify cash on hands to pay debt and operate)
This is Most important sheet, as it tell correctly all the money inflow and outflow.
all the inflow and outflow need to have receipt base unlike P&L statement base on a assumption on a certain period of time.
Items on this sheer include.
i) Operation Cash Flow - this show the company actual earining from its operation. can verify with Net profit of Profit & Loss statement
ii) Investment Cash Flow - this show expenditure or earning from disposal of 1 time Asset or earning.to verify with balance sheet Asset side.
iii) Financial Cash Flow - this show either repaid in liabilities or divided to share holder. to verify with Balance sheet liabilities and Equities.
iv) Cash at start
v) Cash at the end
D) changes in Equity (no of ordinary share)
This show the changes in Equity from start raise capital until now.
if there is any bonus issue, right issue. dividend paid, distributed and non distributed or retain earning,
divided amount paid can be check from here. refer to Financial cash flow and P&L statement.
to be continue in details.
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