Financial Statements
Historical Financial Statement
- reflect past performance
- prepared on a quarterly and annual basis
- Required by SEC
Types
Income Statement
Reflects the results of the performance of a firm over a specified period of time. It records all profits and expenditure and shows if the firm is making a profit or is having a loss.
Balance Sheet
Is a snapshot of a company's assets, liabilities and owner's equity at a specific point in time.
Statement of Cash Flows
Summarizes the changes in a firm's cash position for a specified period of time and details why the changes occurred.
Pro Forma Financial Statement
- Projections for future periods based on forecasts
- Typically completed for 2 or 3 years in future
- Just a planning tool