B ASIC F INANCIAL S TATEMENTS Marketing Co-Op

F OUR T YPES OF F INANCIAL S TATEMENTS Balance Sheets Income Statements Cash Flow Statements Statement of Shareholder’s Equity

B ALANCE S HEETS OWNS OWES Shows what a company OWNS and what it OWES Detailed Information about a companies assets, liabilities and shareholder’s equity

A SSETS AND L IABILITY Anything of monetary value that you own Cash Checking Savings Real estate A debt that you owe to others Credit cards School loans Car payments Taxes AssetsLiability

S HAREHOLDER ’ S E QUITY Sometimes called capital or net worth The money that would be left if a company sold all of its assets and paid off all of its liabilities Belongs to the shareholders or the owner of the company

I NCOME S TATEMENT Report that shows how much revenue a company earned over a specific time period Shows the costs and expenses associated with the earnings

C ASH F LOW S TATEMENT Report a company’s inflows and outflows of cash Shows changes over time rather than an absolute dollar amount at a given time Includes the following business activities Operating Activities Investing Activities Financing Activities

P ERSONAL F INANCIAL S TATEMENT A summary of your current personal financial condition – a snapshot of your finances It measures your financial progress to date and shows how well you have met your financial obligations

R EVIEW 1. What are the four types of financial statements? 2. Explain the difference between assets and liabilities. 3. What is shareholder’s equity?