Study note: financial training 1-4

The 4th day!

Cash flow statement

Cash flows because one of the three actions below:
Operating activities
Investment activities
Financing activities
After a operating period, we can see the cash flow result from a simple number: cash account.
Note it is different from cash to profit. For example, you sold a machine to a company, then we can see the profit increasing from the balance sheet. But because the buyer did not pay for it immediately, so the cash would not change at the same time.
Statement of changes in owner?? equity is often attached in the main sheet. It normally have two parts: invested capital, income preserved.
PS: some changes can not be seen from income statement and cash flow statement. For examples, goods on hand and other liabilityies.

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10月 7, 2006 | Filed Under Life | Leave a Comment

Study note: financial training 1-3

?The 3rd day!?

To normalize accounting behavior, Accounting Principles is needed.
GAAP = Generally Accepted Accounting Principles. 1973. by FASB.
IAS = International Accounting Standard. 1973. by ISAC.
PRC GAAP. 1993. by ministry of finance. Based on IAS.
By income statement, we can know how the company runs, and if it gains income in the term.
Structure of income statement:
Revenue - Cost = Gross Profit
Gross Profit - Operating expenses = Operating profit (EBIT)
Operating profit (EBIT) - Financial expenses = Earning before taxes (EBT)
Earning before taxes (EBT) - Taxes = Net profit
By cash flow statement, we can see the source and usage information of cash in a certain course. Because everything needs cash to run a company, the cash is very important. Enron was the largest energy company and its income statement kept in excellent condition, even till its burst-up.

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·本文由 iamcj 原创，采用

10月 6, 2006 | Filed Under Life | 1 Comment

Here is today’s contents… Keep it! Go on!

Balance sheet

We can consider balance sheet as a snapshot of one company’s financial status.
Assets = liabilities + ownership interest. Because:
The source of your money is liabilities or ownership interest.
And the destination of your money is assets.
Assets include current assets and fix assets, for main.
Currents assets + fix assets = total assets.
?Current liabilities include payable account, short money and tax should be paid, for main.
Owner’s equity means the financial benefit which the owner should have in company’s assets.

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·本文由 iamcj 原创，采用

10月 5, 2006 | Filed Under Life | Leave a Comment