The Importance of the Income Statement

The Importance of the Income Statement There are four basic financial statements: Balance Sheet, Cash Flow Statement, Income Statement and Statement of Retained Earnings. External users such as investors, creditors, etc. use these statements to gain insight into the financial…

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Understanding the Cash Flow Statement

The purpose of the cash flow statement is to show owners/investors the amount of money that is flowing in and out of the business over a period of time, typically a year or one quarter.  It also ties together both…

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Understanding the Income Statement

The income statement is one of the three major financial statements.  The other statements are the balance sheet and the statement of cash flow.  The purpose of the income statement is to report the company’s earnings over a certain period of…

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