To put it simply: Financial Statements provide financial information that is prepared at the end of an accounting period (usually one year).

1. Financial
statements
To put it simply: Financial
Statements provide financial
information that is prepared at the
end of an accounting period
(usually one year).
There are four major financial
statements:
1. Statement of
Comprehensive Income
2. Statement of Changes in
Equity
3. Statement of Financial
Condition
4. Statement of Cash Flows.
Let us make it into chunks!
Statement of Comprehensive
Income: on this document you can
see the revenues and expenses for
a certain period of time. That is, it
shows the results of the
operations.
Statement of Changes in Equity:
this statement will show the
owners' interest in the assets of a
business. Owners' equity includes
the amount invested by the
owners plus the profits (or minus
the losses) in the enterprise.
Statement of Financial Condition:
this shows the financial standing
of the business. Here you can
monitor the assets, liabilities, and
owner’s equity of the business.
Statement of Cash Flows: just like
the name itself, it is the summary
of the money coming in and out.
Tom’s Auto Repair Shop
Statement of Comprehensive Income
For the month ended June 30,2013
INCOME
Repair Income P81,000.00
EXPENSES
Salary P15,000.00
Rent P10,000.00
Supplies P18,000.00
Total Expenses P43,000.00
PROFIT FROM OPERATIONS P38,000.00
Tom’s Auto Repair Shop
Statement of Changes in Equity
For the month ended June 30,2013
Tom’s Capital, June 1 P
Add: Investment in June, P200,000.00
Profit in June 38,000.00 P238,000.00
Total 238,000.00
Less: Tom’s Drawing 20,000.00
Tom’s Auto Capital, June 30 P218,000.00
Tom’s Auto Repair Shop
Statement of Financial Condition
June 30,2013
ASSETS
Cash P 167,000.00
Accounts Receivable 24,000.00
Shop Supplies 77,000.00
Repair Equipment 100,000.00
Total Assets P 368,000.00
LIABILITIES AND OWNER’S EQUITY
Accounts Payable P 50,000.00
Bank Loan P 100,000.00 P 150,000.00
Tom’s Capital P 200,000.00
Add: Net Income 38,000.00
Total 238,000.00
Less: Drawing 20,000.00 218,000.00
TOTAL LIABILITIES AND OWNER’S EQUITY P 368,000.00
Tom’s Auto Repair Shop
Statement of Cash Flows
For the month ended June 30,2013
Cash Flows from Operating Activities:
Collections from Customers P 57,000.00
Payments for Expenses (25,000.00)
Payment for Shop Supplies (85,000.00) (53,000.00)
Cash Flows from Investing Activities
Payment for Repair Equipment (60,000.00)
Cash Flows from Financing Activities
Bank Loan P 100,000.00
Cash Withdrawal (20,000.00)
Investment of Tom 200,000.00 280,000.00
Net Cash Inflow P 167,000.00