The Financial Statements Report Template is used for both the monthly and quarterly financial report and provides one indication of the performance of the company. The Controller is responsible for maintaining current Financial Statements on a monthly basis. The CFO, President, and the Board of Directors should review the Financial Statements each month.
G&A104-6 FINANCIAL STATEMENTS typically are comprised of three main parts: The Balance Sheet, Income Statement, and the Statement of Cash Flows.
The Balance Sheet lists all of the company’s assets (cash, receivables, deposits, inventory, equipment, intellectual property, etc.), liabilities (debt, lease obligations, tax obligations, etc.), and equity (paid in capital, stock issued, dividend paid, etc.). It identifies the assets (which are “the business”) and the financiers, or debt and equity holders and the relationship between the two.
The Income Statement represents the company’s operational sources of cash – sales revenue – or uses – business expenses and is typically divided into operating periods that represent months, quarters or years of operations. It identifies the profitability of the company as a function of the tax and accounting decisions.
The Statement of Cash Flows is the difference between the Balance Sheet sources and uses of cash and the Income Statement sources and uses of cash. This difference assists in identifying the health of the company’s operations. It identifies whether the company is producing cash or consuming cash and at what rate and from what sources.
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