Financial Terms / financial statement

Understand Financial Statements

A financial statement is a snapshot of a company's assets and liabilities at any given point in time, as seen in the balance sheet.

Formula

Net Cash Flow = Cash Inflows – Cash Outflows

How do I calculate the financial statement?

In order to accurately calculate financial statements, it is important to understand the basics of a Cash Flow Statement. This statement is used to report the change in a nonprofit organization’s financial position from one period to the next. It is important to note that this statement is not the same as a Profit & Loss Statement. 

When calculating the cash flow statement, the following formula should be used: 

Net Cash Flow = Cash Inflows – Cash Outflows 

This formula can be used to determine the net cash flow for the period being examined. It is important to take into consideration any payments due to creditors, any investments made, and any other cash transactions that occurred during the period. Once these items are taken into account, the net cash flow can be calculated using the formula provided. 

To get started with this calculation, it is recommended to use either Sourcetable. Both of these programs have templates that can be used to input the data and run the calculations. This will help to ensure accuracy and save time.

What is an income statement?

An income statement is a financial statement that shows how much money a company earned and spent over a specific period of time.

What information is provided in an income statement?

An income statement typically provides information on a company's revenues and expenses, as well as the net income or loss for a given period.

How is net income calculated?

Net income is calculated by subtracting total expenses from total revenues. The formula is Net Income = Total Revenues - Total Expenses.

Key Points

How do I calculate financial statement?
Net Cash Flow = Cash Inflows – Cash Outflows
Balance Sheet
The balance sheet provides an overview of a company's financial situation and performance. It shows assets, liabilities, and equity. It is used to measure the financial health of a business and can be used to identify areas that need improvement.
Income Statement
The income statement shows a company's earnings over a given period of time. It provides information on how much money was made, how much was spent, and how much was left over. It is used to measure the financial performance of a business and to make decisions about future investments.
Cash Flow Statement
The cash flow statement shows cash used or generated by a business. It provides information on the sources and uses of cash, such as cash from operations, investing activities, and financing activities. It is used to measure the financial liquidity of a business and can be used to identify potential issues with cash flow.
Statement of Owners' Equity
The statement of owners' equity shows the changes in the owner's equity over a given period of time. It provides information on the capital investments made by the owners, income generated, and expenses incurred. It is used to measure the overall financial health of a business and to identify areas that need improvement.
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