Finance

• Cash flow statement 


  Financial statement that indicates the movement of cash recipes and cash payments resulting from transactions over a period of time.

  Liquidity-the amount of cash a business has access to and how readily it can convert assets into cash so that debt can be paid.
• Income statements

  E.g revenue, PNL

  the income statement is used primarily to help a business calculate how much net profit it has made over a POT. Coming in as revenue, going out as expenditure, and delivery as profit. Expenses in this statement include selling, financial and admin
• Balance sheets

  represents a business’ assets and liabilities at a POT. Represents the target net worth of the business. Helping a business owner monitor debt and equity labels.
• Terminology

  Debtors-Owe the business money

  (current assets)

  Creditors-Owe money to the business (current liabilities)
• Terminology

  Income=sales/sales revenue

  Revenue=$ earned by the business/sale

  Profit=gross and net

  Expenses=expenditure/COGS
• Formulas

  COGS=OS+P-CS (+freight/cartage)

  GROSS PROFIT=sales-COGS

  NET PROFIT=gross prof-expenses