Income Statement
The Income Statement is a record of the company's revenue
and expenses over a specified period, usually a year. It is prepared from the
income and expense accounts of the trial balance. The income statement is
usually the first statement of the three (Income statement, Balance Sheet
Statement and Cash Flow Statement) to be prepared from the trial balance. It is
required to complete the Balance Sheet statement so even if you choose not to
do the Income Statement first, you have to do it before the Balance Sheet. The
reason is because the net income is always added to the Owner’s Equity in
the Balance Sheet.
The common line items in the Income Statement are:
1.
Total
Sales
2.
Cost
of Goods Sold
3.
Gross
Profit
4.
Selling,
General and Administrative Expense
5.
Depreciation,
Depletion and Amortization Expense
6.
Research
and Development Expense
7.
Operating
Profit
8.
Impairment
9.
Finance
costs
10.
Income
Tax Expense
11.
Other
Gains
12.
Other
Expenses
13.
Net
Profit
Below is the Income Statement for Guinness Nigeria for
years 2005 to 2015 (Guinness Nigeria’s financial year run from July to June).
Also the figures are in thousands, so when you see 47,030.8 it is 47,030,800,000
Naira.
Balance Sheet Statement
The Balance Sheet Statement is the statement of the
company’s financial position showing the company’s assets, liabilities and
equity as of a point in time. This is usually at the end of at the company’s
financial year (maybe 31 December). The Balance Sheet is so called because it
strictly follows the accounting equation rule which states that assets must
equal the sum of the liabilities and owner’s equity (balance out).
The common items in the Balance Sheet Statement are:
1.
Assets
a.
Cash
and cash equivalents
b.
Accounts
receivables
c.
Inventories
d.
Assets
held for sale
e.
Property,
Plant and Equipment (PPE)
f.
Intangible
assets (patents, goodwill, trademarks, secret formulas)
g.
Other
assets
2.
Liabilities
a.
Accounts
payable
b.
Deferred
tax liabilities
c.
Short-term
loans
d.
Long-term
loans
e.
Other
liabilities
3.
Equity
a.
Capital
stock
b.
Additional
paid-in capital
c.
Retained
earnings
Below is the Balance Sheet Statement for Guiness
Nigeria for years 2005 to 2015 (Guiness Nigeria’s financial year run from July
to June). Also the figures are in thousands, so when you see 243.2 it is
243,200,000 Naira.
Cash Flow Statement
Cash flow statement is the statement of the cash inflow
(generated) and cash outflow (expended) by a company during a specified period
(usually a year period). It accounts for all transactions of the company that
affects the cash and cash equivalent balance. The statement is generally broken
down into Cash Flow from Operating Activities, Cash Flow from Investing Activities
and Cash Flow from Financing Activities.
The common items in the Cash Flow Statement:
1.
Cash
from Operating Activities
a.
Net
Income
b.
Depreciation,
Depletion and Amortization
c.
Other
Non-Cash Capital
2.
Cash
from Investing
a.
Capital
Expenditure
b.
Sale
of Property, Plant and Equipment
c.
Cash
Acquisitions
d.
Proceeds
from Investment
e.
Divestures
f.
Investment
in Marketable & Equity Securities
g.
Other
Investing Activities
3.
Cash
from Financing
a.
Short-term
debt issued
b.
Short-term
debt paid
c.
Long-term
debt issued
d.
Long-term
debt paid
e.
Preference
Dividends paid
f.
Increase
in Capital Stocks
g.
Decrease
in Capital Stocks
h.
Special
Dividend Paid
i.
Increase/Decrease
in Deposits
j.
Increase/Decrease
in Insurance Reserves
k.
Other
Financing Activities
Below is the Cash Flow Statement for Guiness Nigeria
for years 2005 to 2015 (Guiness Nigeria’s financial year run from July to
June). Also the figures are in thousands, so when you see 9,874.4 it is 9,874,400,000
Naira.
great work... pls can i get the sample excel file of the above financial statement
ReplyDelete