Stock Market Analysis and Personal Finance

Mr. Bernstein

The Three Primary Financial Statements

September 2015

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Stock Market Analysis & Personal Finance Mr. Bernstein

Balance SheetLists what the business owns and what it owesAssets = Liabilities + Owner’s Equity

Assets: Cash, Equipment, Inventory, Accounts ReceivableLiabilities: Long-term, Short-term loans, Accounts Payable

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Stock Market Analysis & Personal Finance Mr. Bernstein

Cash Flow StatementDescribes cash flows into and out of the business,

known as receipts and disbursementsCash flows are NOT the same as profits or even

revenues and expenses – there are many non-cash revenues and expenses:

Purchases on credit (accounts payable), depreciationSales on credit (accounts receivable)

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Stock Market Analysis & Personal Finance Mr. Bernstein

Income StatementShows revenues and expense over timeProduces the Profit or Loss for the time periodIncludes revenues you have not yet received and expenses you

have not yet paidKey Entries:

Revenue Cost of Goods SoldGross Profit Operating ExpensesIncome before Taxes TaxesNet Income after Taxes