The income statementv As you now know an income statement details all of your companys revenues and expenses. You ne an income statement first because this report provides the information ne to create other financial reports. Revenue is all sales generat by your business. Expenses can include various operating costs such as supplies rent or utilities. Create an income statement first so you can see your businesss net income and analyze sales vs profits debt.
When creating an income Once you have gather
Statement list the income first. Then Lithuania WhatsApp Number List list all your company expenses during the period and subtract the expenses from your income. The bottom of your income statement will tell you whether you had a net profit or loss for the period. Also read Example of an Expenditure and Income Report Download Here Retain earnings report The retain earnings statement is the second financial report you prepare in the accounting cycle. Use the net income or net loss from to prepare a statement of retain earnings. information about your net profit or loss you can see your total retain earnings and how much you will pay investors if any. Also read Example of a Cafe Business Financial Report Balance.
Sheet After you have creat
An income statement and retain Hong Kong Phone Number List earnings report its time to create a balance sheet for your business. Again your balance sheet lists all of your assets liabilities and equity. Your total assets should equal the total liabilities and equity on your balance sheet. Use information from the income statement and retain earnings statement to help create the balance sheet. Create your balance sheet and include all shortterm and longterm assets shortterm and longterm liabilities and the difference between assets and liabilities aka equity. Also read Example of a Responsibility Report LPJ and How to Make It Cash flow statement.