As noted before, financial reports are a written statement presented either quarterly or annually to the company’s shareholders and general public which includes at least three important financial accounting statements:
Statement of income
Statement of income shows the net profit the company had made during the financial quarter. In financial accounting, it is given by the formula:
Net Profit = Revenue – Expenses
> In order to find the net profit, an economic expert will have to add up the sales figures of the company to get the gross revenue.
> In the same way, he will have to add up all the expenses from different sources in order to get the total expenses.
> Once he has subtracted the expenses from the revenue, he will get the profit. This profit may include taxable income of the company or may exclude it.
> ‘After tax profits’ will have to be calculated after subtracting the taxes from the profits.
You can get an in depth analysis in Myassignmenthelp.com financial statement analysis assignments.
Statement of cash flows
Statement of cash flows simply states how much money came in and how much money left the company in a financial sheet. It consists of three parts:
> Operating activities which show much cash was used for operating the company, which came out of the profits.
> Financial activities which show how much money was available during that quarter which came from the sale of stocks and bonds
> Investment activities which show the amount of money that was used for investment purposes.
Each of these aspects are precisely maintained and required in financial report analysis.
Balance sheet is the final step in preparing the financial reports. It is one of the key topics which require financial statement analysis help. It lists the assets of the company on one hand and the liabilities on the other along with owner’s equity.
> Assets consist of the amount receivable along with any movable or immovable asset which the company might own.
> Liabilities would include the amount payable by the company which in turn would include the expenses as well as the taxes paid by the company.
> Owner’s equity would consist of owner’s capital or the money which the owner started the financial quarter along with the owner’s draw.
> In a joint stock corporation, owner’s equity is replaced by the term stock-holder’s equity and owner’s draw is called dividends. Additionally treasury stocks which the company keeps to itself and does not sell in the stock exchange are also a part of the equity. Our financial statement analysis assignment provides a comprehensive study about it.
If you know more about Myassignmenthelp.com services, Read MyAssignmentHelp Reviews