Financial Statement Examples

Financial Statement Examples

The following financial Statement example provides an outline of the most common Financial Statements. It is impossible to provide a complete set of examples that address every variation in every situation since there are thousands of such companies. Each example of the financial statement states the topic, the relevant reasons, and additional comments as needed

There are three major financial statements:

Financial Statement Examples

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For eg:
Source: Financial Statement Examples (wallstreetmojo.com)

#1 Balance Sheet Example

The balance sheet shows the assets, liabilities, and shareholder’s equity of the Company in a particular format.  Consider the example of Apple (consolidated balance sheet)

Financial statement examples 2

Source: Apple.Inc

Current Assets

Current AssetsCurrent AssetsCurrent assets refer to those short-term assets which can be efficiently utilized for business operations, sold for immediate cash or liquidated within a year. It comprises inventory, cash, cash equivalents, marketable securities, accounts receivable, etc.read more are the assets that convert into cash in less than one year.  The assets of the Company include:

Non-Current Assets

Non-Current AssetsNon-Current AssetsNon-current assets are long-term assets bought to use in the business, and their benefits are likely to accrue for many years. These Assets reveal information about the company's investing activities and can be tangible or intangible. Examples include property, plant, equipment, land & building, bonds and stocks, patents, trademark.read more are long term assets of the Company which it expects to convert into cash in more than one year:

  • Marketable securities under non-current assets are an investment by the Company in exchange-traded securities, which it expects to mature after one year.
  • Property, plant, and equipment, as the name suggests, are the investments of the Company in the property for building offices, factories, manufacturing hubs or warehousing, and equipment used to manufacture the products of the Company.
  • Other non-current assets are the non-current assets of the Company, which cannot be segregated under above mentioned non-current assets.

Current Liabilities

Current Liabilities of the CompanyCurrent Liabilities Of The CompanyCurrent Liabilities are the payables which are likely to settled within twelve months of reporting. They're usually salaries payable, expense payable, short term loans etc.read more are the liabilities it owes to the vendors, banks, investors of commercial paper, etc. and these liabilities will mature in less than one year.

Non-Current Liabilities

Non-Current LiabilitiesNon-Current LiabilitiesThe most common examples of Non-Current Liabilities are debentures, bond payables, deferred tax liabilities etc. Non-Current Liabilities are the payables or obligations of an entity which might not be settled within twelve months of accounting such transactions. read more are the liabilities which the Company is liable to pay in more than one year.

  • Deferred revenue in non-current liability is the same as under current liabilities, but the Company will provide goods and services after one year.
  • Term debt is long term loan taken by the Company from banks and financial institutions.

Shareholders Equity

Shareholders EquityShareholders EquityShareholder’s equity is the residual interest of the shareholders in the company and is calculated as the difference between Assets and Liabilities. The Shareholders' Equity Statement on the balance sheet details the change in the value of shareholder's equity from the beginning to the end of an accounting period.read more includes the initial amount invested by the shareholders of the Company and retained earningsRetained EarningsRetained Earnings are defined as the cumulative earnings earned by the company till the date after adjusting for the distribution of the dividend or the other distributions to the investors of the company. It is shown as the part of owner’s equity in the liability side of the balance sheet of the company.read more, i.e., the amount earned by the Company over the years of its operations.

#2 Income Statement Example

The second financial statement is that of Income Statement. It gives details about the financial performance of the Company over some time. It provides income and profit earned by the Company. Consider the below snapshot of the statement of operationsStatement Of OperationsStatement of Operations, also known as the income statement, displays a Company’s revenues & expenditures for a specified period, i.e., monthly, quarterly, or annually in a standard accounting format in accordance with the accounting policies suggested by the governing body.read more for Apple Ince.

Consolidated Statement of Operations

Source: Apple Inc

#3 Statement of Cash Flow Example

The cash flow statement includes the cash inflows or outflows by the Company during the period.

Consolidated Statements of Cash Flows

Source: Apple.Inc

It includes three types of cash flows:

Conclusion

The financial statements of the companies are a bit complex, and they are interlinked with amounts on financial statements reflects in another statement in a different form. Hence, while analyzing the Companies performance, all the financial statementsFinancial StatementsFinancial statements are written reports prepared by a company's management to present the company's financial affairs over a given period (quarter, six monthly or yearly). These statements, which include the Balance Sheet, Income Statement, Cash Flows, and Shareholders Equity Statement, must be prepared in accordance with prescribed and standardized accounting standards to ensure uniformity in reporting at all levels.read more should be read and analyzed together. These statements reflect the various business activities of the Company.

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This has been a guide to Financial Statement Examples. Here we discuss step by step discussion of the content of financial statements with examples. You may learn more about accounting from the following articles –

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