1. Stock Market Analysis and Personal Finance Mr. Bernstein The Three Primary Financial Statements September 2015

2. Stock Market Analysis & Personal Finance Mr. Bernstein Balance Sheet Lists what the business owns and what it owes Assets = Liabilities + Owner’s Equity Assets: Cash, Equipment, Inventory, Accounts Receivable Liabilities: Long-term, Short-term loans, Accounts Payable 2

3. Stock Market Analysis & Personal Finance Mr. Bernstein Cash Flow Statement Describes cash flows into and out of the business, known as receipts and disbursements Cash 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), depreciation Sales on credit (accounts receivable) 3

4. Stock Market Analysis & Personal Finance Mr. Bernstein Income Statement Shows revenues and expense over time Produces the Profit or Loss for the time period Includes revenues you have not yet received and expenses you have not yet paid Key Entries: RevenueCost of Goods Sold Gross ProfitOperating Expenses Income before TaxesTaxes Net Income after Taxes 4