Unless you have a background in busniess, you are probably not using much of your audited financial statements except to give to your banker. Here are the basics of your financial statements:
Financial statement: This statement provides a quick look at your total assets during a specific period and how it is funded. The assets include a regular basis your money, your cash, your accounts receivable, your property and your assets Prepaid capital. This capital is funded by your accounts payable and loans, or your equity. Accounts payable, loans and other debts are called "passive" .Your equity interest is the amount originally invested in your company common stock plus retained profits. Retained profits are accumulating profits and losses from the beginning of your company, less dividends paid.
Statement of income: it presents the operational income, the prices of goods sold and the company's operating costs. The difference between revenue and cost of goods sold is the gross profit margin. It is important to understand that the raw materials used to manufacture your products or services are crucial in setting the price. Operating expenses include all operating costs, such as legal expenses, sales and marketing; and administrative costs, such as rent, electricity, employee payroll and equipment. Note that non-cash expenses such as depreciation of property assets is also included.
The financial statements have more complex components, such as the declaration of input and output of money and notes to the financial statements. The declaration of input and output.
Financial statement: This statement provides a quick look at your total assets during a specific period and how it is funded. The assets include a regular basis your money, your cash, your accounts receivable, your property and your assets Prepaid capital. This capital is funded by your accounts payable and loans, or your equity. Accounts payable, loans and other debts are called "passive" .Your equity interest is the amount originally invested in your company common stock plus retained profits. Retained profits are accumulating profits and losses from the beginning of your company, less dividends paid.
Statement of income: it presents the operational income, the prices of goods sold and the company's operating costs. The difference between revenue and cost of goods sold is the gross profit margin. It is important to understand that the raw materials used to manufacture your products or services are crucial in setting the price. Operating expenses include all operating costs, such as legal expenses, sales and marketing; and administrative costs, such as rent, electricity, employee payroll and equipment. Note that non-cash expenses such as depreciation of property assets is also included.
The financial statements have more complex components, such as the declaration of input and output of money and notes to the financial statements. The declaration of input and output.
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