1. · 1 CORPORATE FINANCIAL REPORTING Introduction

2. 2 LET’S TALK ABOUT THE FOUR FINANCIAL STATEMENTS

3. Introduction3 I NCOME S TATEMENT REVENUES (and GAINS) less EXPENSES (and LOSSES) equals NET INCOME (PROFIT)

4. Introduction4 B ALANCE S HEET ASSETSLIABILITIES Current assets Noncurrent assets OWNERS’ EQUITY

5. Introduction5 C ASH F LOW S TATEMENT Cash from operating activities: ± Cash from investing activities: ± Cash from financing activities: = Total increase or decrease in cash

6. Introduction6 C ASH F ROM O PERATING A CTIVITIES I NCLUDES: THE INCREASE OR DECREASE IN CASH FROM THE COMPANY’S NORMAL DAY-TO-DAY INCOME PRODUCING ACTIVITIES.

7. Introduction7 C ASH F ROM I NVESTING A CTIVITIES I NCLUDES: THE INCREASE OR DECREASE IN CASH FROM: - ACQUIRING OR DISPOSING OF NONCURRENT ASSETS AND - LENDING MONEY/BRING REPAID THE PRINCIPAL AMOUNT LOANED.

8. Introduction8 C ASH F ROM F INANCING A CTIVITIES I NCLUDES: THE INCREASE OR DECREASE IN CASH FROM: - BORROWING MONEY AND REPAYING THE PRINCIPAL BORROWED AND - ALL CASH TRANSACIONS WITH THE COMPANY’S OWNERS.

9. Introduction9 N OW L ET’S S EE W HAT F INANCIAL R EPORTING D OES Andetony Corp.

10. Introduction10 H OW D ID A NDETONY C ORP. D O IN S EPTEMBER? What would we look at to decide?

11. Introduction11 H OW E ASY W OULD I T B E T O T RICK O UR A CCOUNTANT ?

12. Introduction12 O THER P OINTS T O D ISCUSS Redundancy in financial statements Bookkeeping stuff

13. Introduction13 Q UESTIONS ?