Lecture+1+HW - Lecture 1 HW HW 1-1 OVERVIEW OF FINANCIAL...

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Lecture 1 HW HW 1-1 OVERVIEW OF FINANCIAL STATMENTS Complete the following table. Financial Statement Purpose Equation Income Statement To report the amount of revenues less expenses for a period of time. Revenue - Expenses = Net Income Statement of Retained Earnings Reports the way that net income and the distribution of dividends affected the financial position of the company during the period. Beginning Balance (Past Retained earnings) + Net Income – Dividends = Current Retained earnings Balance Sheet The balance sheet reports a company’s financial position at a point in time. Assets = Liabilities + Stockholders’ equity Statement of Cash Flows To record activities that result in cash changing hands. Cash flow from operating activities – Cash flow from Investing activities + Cash flows from financing activities = Change in cash RELATIONSHIPS AMONG FINANCIAL STATEMENTS Then, answer the following questions:

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