Balance/Income/ Cash Flow Statement

By: Savanah Rogers


A financial statement that gives a snapshot of a company's financial situation at a particular point in time and lists its different assets, liabilities, and owners' equity.

(Vocab Sheet)

What does it Do?

The balance sheet is used to "give investors an idea as to what the company owns and owes, as well as the amount invested by shareholders."

It shows how "healthy" a company is.

Where does it come from?

This sheet comes from this formula:

Assets = Liabilities + Shareholders' Equity

What does it show?

Current/Long Term Assets

  • Inventory
  • Prepaid Expenses
  • Money owed by customer to company

  • Long Term Investments
  • Land, Machinery, Equipment
  • Acquired Intangible Assets

Current/Long Term Liabilities

  • Current Portion of Long Term Debt
  • Interest Payable
  • Tax, Rent, Utilities
  • Wages
  • Customer Prepayments


  • Retained Earnings
  • Treasury Stock

What are the sections of the Balance sheet?

Assets, Liabilities, and Equity are the three sections that make up the balance sheet.

What to do with it

Compare current balance sheets with previous ones to find trends over time. You can also compare it with those of different businesses in the same industry.
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Cash Flow Statement/Analysis

Parts of the Cash Flow Statement

What is the Cash flow statement?

  • Actual cash inflow/ outflow over a period of time.

What does it do?

  • Recognize trends in business performance, handy when a difference between amount of money reported vs. amount of net cash flow generated by operations.

Where does it come from?

  • Cash generated / expense reports

What does it show?

  • Shows conditions of income, does not show potential to make a profit, contrast between total income and amount of expenses

What are the sections?

  • Operating cash flow, investing cash flow, financing cash flow

Income statement

Income Statement Details

What is it?

  • Measures company's performance over a period

Where does it come from?

  • It comes from company itself made monthly yearly or twice a year


  • Operating and non operating
  • Operating-expenses/revenues
  • Non operating- not directly tied to regular operations

What does it do?

  • Investor can make decisions on what their profitability is and whether they want to invest

What does it show?

  • Profitability
  • Future growth of a company
  • determine income tax liabilities

Two different types?

  • Multi-step
  • Single-step