Financial statements

Question 1

How well did the company perform during the year

Answer 1

Income statement

Revenues - Expenses = Net Income

Question 2

Why did the company’s retaned earning change during the year

Answer 2

Statement of retained earnings

Beginning retained earnings
Net income
Dividends declared
= Ending retained earnings

Question 3

What is the company’s financial position at fiscal year end?

Answer 3

Balance Sheet

Assets = Liabilities + Equity

Question 4

How much cash did the company generate and spend during the year

Answer 4

Statement of cash flows

Net operating cash flows
+/- net investing cash flows
+/- net financing cash flows
= Increase/Decrease in cash

Question 5

Income statement

Answer 5

Revenues - Expenses = Net Income

How well did the company perform during the year

Question 6

Statement of retained earnings

Answer 6

Beginning retained earnings
Net income
Dividends declared
= Ending retained earnings

Question 7

Balance Sheet

Answer 7

Assets = Liabilities + Equity

What is the company’s financial position at fiscal year end?

Question 8

Statement of cash flows

Answer 8

Net operating cash flows
+/- net investing cash flows
+/- net financing cash flows
= Increase/Decrease in cash