Chapter 8

Worksheet, Financial Statements

 Worksheet, Financial Statements

• THE WORKSHEET

• PREPARING THE WORKSHEET

• ESSENCE OF FINANCIAL STATEMENT

• COMPLETE SET OF FINANCIAL STATEMENTS

• PREPARING THE FINANCIAL STATEMENT

• INCOME STATEMENT

• Statement of Changes in Equity

• Statement of Changes in Equity

• Balance Sheet

• Cash Flow from Operating Activities

• Cash Flows from Investing Activities

• Cash Flow from Financing Activities

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Worksheet, Financial Statements

THE WORKSHEET PREPARING THE WORKSHEET

• Accountants often use a worksheet to • The step in the preparation of a
help transfer data from the worksheet will be illustrated using the
unadjusted trial balance to the Del Mundo Landscape Specialist
financial statements. This multi- case:
column documents provides an
efficient way to summarize the data
for financial statement.

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Worksheet, Financial Statements

ESSENCE OF FINANCIAL COMPLETE SET OF FINANCIAL
STATEMENT STATEMENTS

There are question that the owner of a An entity shall present with equal
business periodically ask—How much did prominence all of the financial statements
the business entity earn? What is the in a complete set of financial statements.
financial condition of the business? How
much is the owner’s interest in the entity
today? What happened to the cash
receipt? Where did cash go? Investors,
creditors, taxing authorities and other user
have their own question about the business
which need to be answered.

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Worksheet, Financial Statements

PREPARING THE FINANCIAL
STATEMENT INCOME STATEMENT

Once of the worksheet is completed, it is The income statement is a formal

easy to prepare the financial balances have statement showing the performance of the
been extended to the appropriate income enterprise for a given period of time.
statement and balance sheet columns.
Most of the information needed to prepare
the income statement, statement of
changes in equity and balance sheet are
available from the work sheet.

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Worksheet, Financial Statements
STATEMENT OF CHANGES IN
EQUITY
BALANCE SHEET
The balance sheet is a statement that
shows the financial position or condition of
an entity by listing the assets; liabilities and
owner’s equity as at a specific date.
STATEMENT OF CASH FLOW
The statement of cash flows provide
information about the cash receipts and
cash payments of an entity during a period.
It is a formal statement that classifies cash
receipts (inflows) and cash payments
(outflows) into operating, investing and
financing activities.
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Worksheet, Financial Statements
CASH FLOW FROM OPERATING
ACTIVITIES
Operating activities generally involve
providing services, and producing and
delivering goods. Cash flows from
operating activities are generally the cash
effects of transactions and other events
that enter into the determination of profit or
loss.
CASH FLOWS FROM INVESTING
ACTIVITIES
Investing activities include making and
collecting loans; acquiring and disposing of
investments in debt or equity securities;
and obtaining and selling of property and
equipment and other productive assets.
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Worksheet, Financial Statements

• Cash Flow from Financing Activities
Financing activities include obtaining resources from owners and creditors.

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