FIN340- Income Statement, Balance Sheet, and Depreciation

Introduction into Finance 340

Income Statement:

Sales Revenue

-Cost of Good Sold

Gross Profit Margin

-Operating expense

Operating Profit/earnings before income taxes

-Interest expense

Earnings before Tax

-Taxes

Net Income = R/E or dividends

 

 

Retained Earnings:

 

Beginning R/E

+net income

-dividends

Ending R/E

 

*accumulates, therefore not all available in cash because ending r/e is already supporting other assets

 

Balance Sheet: Assets = Liabilities & Equity

 

Assets: What the firm owns

Liabilities: How the assets are financed

 

Current Assets (short term, < 1 year)
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