Three Statements Flashcards
Cash Flow and Balance Sheet Relationship
Changes in y.o.y in balance sheet drive adjustments in the cash flow
ie delta between PY and CY (CY-PY) should equal adjustments in respective line in cash flow
Net cash flows on the cash flow statement = X on the balance sheet?
the delta in cash on the BS between CY and PY
Relationship between net income (IS) and retained earnings (BS)
IS Net Income = delta in retained earnings on the BS
starting point for the cash flow statement
EBITDA - what is it and how to calculate
Earnings before tax, interest, depreciation and amoritzation
operating profit (EBIT) + D + A (non-cash expense items)
Operating Profit or operating income is
sales - cogs - operating expenses
Income Statement Set Up
Revenue
COS / COGS (direct operating expenses)
= gross profit / (loss)
-
Overheads / indirect operating expenses
= Operating profit / income (EBIT)
-
Interest expense
Tax expense
=
Net profit / (loss)
Where does retained earnings go on the IS
Equity
What is the broad set up of the balance sheet
Assets
Current assests
non-current assets
Liabilities
current
non current
Equity
Totals
Where does long-term loans sit
BS, non-current liabilites
Class accrued expenses (BS)
Liability (ST)
Taxes Payable Classification (BS)
Liabilities (ST)
Salaries Payable (BS)
Liabilities (ST)
Accounts payable (BS)
Liabilities (ST)
Property, Plant, Equipment (BS)
Non-Current Assets (LT)
Long-term investments (BS)
Non-Current Assets (LT)
