Financial Statements

Financial Statements show how a business is doing financially. They help stakeholders understand the performance and financial position of the business.

There are three main types of financial statements:

Balance Sheet Equation: Total Assets = Total Liabilities + Equity

Income Statement Equation: Sales Revenue – Expenses = Profit

Cash Flow Statement Equation:

CF from Operations + CF from Investing + CF from Financing = Net Change in Cash


Note: See Cash Flow Statement for the actual analysis.



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