Guide to Profit and Loss, Balance Sheet & Cash flow statements
Profit and Loss, Balance Sheet and Cash Flow Statements Balance Sheet – Present The value of a company at a certain point in time. Statement of Assets and Liabilities. Profit and Loss Statement – History Measures and reports Profit generated during a certain period. Profit/Loss is an opinion, based on Accounting Principles. Cash Flow – Future Statement showing cash generation (inflow) and cash usage (outflow) GeographyIshistory.com
Profit and Loss statement Operating Profit Sales adjustment Discounts and free of charge items Operating Expenses – Admin & General Operating Expenses – Sales & Marketing Operating Expenses – R&D Capital cost & Taxes $$Profit$$ Gross Sales Net Sales Gross Margin Net Profit Cost of sales or Cost of Goods and Services provided Material, Resources, Sub-contracting, Freight, Royalties, SW licencies P&L statement Sales -Cost of goods sold Gross margin -Operating Expenses Administration Marketing R&D Operating profit GeographyIshistory.com
Balance Sheet <ul><li>Assets </li></ul><ul><li>Fixed Assets </li></ul><ul><li>+ Inventory </li></ul><ul><li>+ Accounts Receivable </li></ul><ul><li>+ Cash and Cash equivalent </li></ul><ul><li>= Total Assets </li></ul>Shareholder’s Equity and Liabilities Equity Share Capital + Other Restricted Equity + Net Profit for the Year + Retained Earnings = Total Equity Liabilities Long Term Loans + Short Term Loans + Accounts Payable = Total Shareholder’s Equity and Liabilities Total Assets = Total Shareholder’s equity and liabilities GeographyIshistory.com
Cash Flow Cash From Profit From Balance Sheet To investment To Expenses GeographyIshistory.com
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