Understanding Balance Sheets and Income Statements

Balance Sheet: The second column in this column should note the value amount of each account. The third column space in this column records the total amount for each group. The fourth column in this column should write down the total amounts of the assets, liabilities, and stockholders' equity. Comparative balance sheet reporting shows that assets less liabilities equals capital employed. The first column should write down the amount of each of the accounts involved in the final. The second column is used to note the amount of each of the accounts up to the initial balance. The third column is used to assemble the alteration or difference of each account. The fourth column is used to denote the signs of plus or minus. Output states location costs are the amount paid for sending money. The first column should record the values of purchases, the purchase cost of the rebates on purchases, and discounts on purchases. The second column in this column should write down the values of the sales return, discounts on sales, and purchases. The third column totals should be recorded in the values of the total sales, initial inventory, net purchases, and ending inventory. The fourth column in this column should write down the values of net sales, cost of sales, and profit or loss in sales. Changes in placement: when there are no refunds or discounts on sales, the value of total sales goes directly to the fourth column as if they were net sales; 2. no cost of purchasing, the value of purchases goes directly to the second column total purchases; 3. when there are no purchase costs or refunds and discounts on purchases, the value of purchases goes directly to the third column, as if they were net purchases; 4. where there is only a return on sales or discounts, the sales value becomes the third column; 5. if there are no refunds on purchases or discounts on purchases, its value goes to the second column. Gross profit only includes all products used to manufacture. The second part of the income statement:

Operating income less net loss and other expenses and products is equal to net income for the year.