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Fin02 - Financial Statement and Reports
Fin02 - Financial Statement and Reports
Fin02 - Financial Statement and Reports
Understanding
Financial
Statements and
Reports
Slide Contents
• Learning Objectives
1. An Overview of the Firm’s Financial Statements
2. The Income Statement
3. The Balance Sheet
4. The Cash Flow Statement
• Principles Applied in This Chapter
• Key Terms
Revenues
Less: Cost of goods sold
Equals Gross
profit
Less: Operating expenses
Equals: net
Operating income
Less: Interest expense
Equals: earnings
Before taxes
Less: Income taxes
Equals:
NET INCOME
Revenues = $14,549,000,000
Decrease in short-term
notes = $9
Total Sources of cash = Total Uses of cash =
$216.00 $220.50