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Financial report*
- 1. HOW TO PREPAREA YEAR-END FINANCIAL REPORT PRESENTED BY NEW DELHI INSTITUTE OF MANAGEMENT
- 2. tells shareholders, governmentagencies, and other interested people how your company performed financially during the preceding year. A FINANCIAL YEAR-END REPORT
- 3. Summarizes your firm’sassets, liabilities and net worth Reports your firm’s sources and uses of cash STATEMENT OF CASH FLOW Details your firm’s revenues and expenses INCOME STATEMENT BALANCE SHEET WHAT DOCUMENTS ARE USUALLY NEEDED TO PRODUCE THE REPORT? A B C
- 4. Current assets STEP 1:Calculate assets Investments Property, plans and equipment Intangible assets Other assets BALANCE SHEETA
- 5. (accounts payable, taxes, wages,etc.) (bank loans, bonds payable, etc.) Current liabilities Long-term liabilities A STEP 2: Calculate liabilities BALANCE SHEET
- 6. A STEP 3: Calculatecompany’s net worth BALANCE SHEET Use these equations ASSETS Liabilities Net worth Assets LiabilitiesNET WORTH
- 7. Net sales B STEP 1:Calculate revenue INCOME STATEMENT Cost of goods sold GROSS PROFIT Costs to make or buy goods Sales figure
- 8. General and administrative expenses Employeecompensation Marketing and advertising B STEP 2: Calculate operating expenses INCOME STATEMENT
- 9. B STEP 3: Determinenet income INCOME STATEMENT Use this equation Gross profit Operating expenses Net income
- 10. Net change toaccounts payable adjustments that pertain to core business activities Depreciation expense Net change to accounts receivable C SECTION 1: Operating expenses STATEMENT OF CASH FLOW
- 11. adjustments related tolong-term assets Purchase of new equipment, machinery or fixed assets Proceeds from sale of fixed assets C SECTION 2: Investing activities STATEMENT OF CASH FLOW
- 12. Dividends paid Long-term loanrepayment Proceeds from issuance of common stock C SECTION 3: Financing activities STATEMENT OF CASH FLOW adjustments linked to bank debts and stocks
- 13. THANK YOU NEW DELHIINSTITUTE OF MANAGEMENT