Chapter 2 Financial Statement Ch2-Financial statement by Nittaya
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ภ1: ภภ2: ภภ!"# ภภ3: $ % ภ& ' ! & ภ& 4: $ % ' ! & Ch2-Financial statement by Nittaya
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Financial Statement
ภŕ¸
ภภŕ¸
Ch2-Financial statement by Nittaya
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ภภภŕ¸
ภภภภภภ! ! ŕ¸
ภ" " ""# # $ $ " "% % && Ch2-Financial statement by Nittaya
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ภภภŕ¸
Ch2-Financial statement by Nittaya
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ภภ! (Assets) (Liabilities) " (Owner quities) ! (Revenues) #$ ! (Expenses) Ch2-Financial statement by Nittaya
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ASSETS Inventory and supplies
! (Assets) ( ' ( ) ภ"* & $ % + ภภภ+
G ov e pa rn te me nt n s t
Cash or the right to receive it (accounts receivable)
Property, plant and equipment
Ch2-Financial statement by Nittaya
Intangibles like patents or copyrights 7 of 37
Liabilities and Equities Liabilities + Owners’ Equity
(Liabilities) , ) #-ภ) "* % +% ) ภ( ภ" (Owners’ equity) , ) ภ"* ( - ภ% +% ".' ! Ch2-Financial statement by Nittaya
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Owners Equity
ภ& ' '!
Contributed Capital
' ( ' ) (* "* & ! + ภŕ¸
Retained Earnings
# ! ภ& "* ภ. ภภ& ภ+ / ภ0 # "* + ภ#- ,
Ch2-Financial statement by Nittaya
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Retained Earnings: RE ภ%
& '(
ภ%
2543
2,000
500
1,500
2544
3,000
1,200
3,300
Ch2-Financial statement by Nittaya
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Profit = Revenues - Expenses
Ch2-Financial statement by Nittaya
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Exh. 3.3
Accounting Equation Assets Assets + Owner’s Owner’s Capital Capital
=
Liabilities Liabilities
+
–
+
Owner’s Owner’s Withdrawals Withdrawals
Revenues Revenues
Ch2-Financial statement by Nittaya
Equity Equity – Expenses Expenses
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REVENUE
) ภ* % # " * + ( ภภภ( * ) ภ+ .* ภภ(ภ( *! '( /!$ 0+* ภ( ภ( " ('( /!$ !1+ ) " ! ! $ ภภภ! . # ภภ(2ภภ! 3 ภภ# $ ! )
) !ภ* .* ภ+ ( " '(ภภ4$ . ! * + . ( ( ( "
* + Ch2-Financial statement by Nittaya
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REVENUE EVENTS s s A
ets
+$5,000
ts e s Asor Cash
Accounts Receivable
b a i L
=
s e i t ili
! (Revenue) , ภ"* & + ' ) ) *! . ( & + ".'
+
s’ r e n y w O u it Eq +$5,000
! , ภ"* & + ' ) *! .
s t e s s A
Ch2-Financial statement by Nittaya
b a i L
=
s e i t ili
-$5,000
+
’ s r ne y w O u it Eq +$5,000 14 of 37
EXPENSE
) ! ภ* ! / ! " " 1 ! # ภ+
) !ภ* .* ภ+ ( " ภ% # ! ( ( . * + ( " ( (
Ch2-Financial statement by Nittaya
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EXPENSE EVENTS As
-$5,000
+% (Expense) ( ภ"* & + ' ) ( + ’ ".' ) *! . s r e wn y
b a i L
s t e s
=
s e i t ili
O
it u Eq -$5,000
+% . 1 ' # + ' '!
s e i t ili
s t e s s = A
Ch2-Financial statement by Nittaya
b a i L +$5,000
+
s’ r e n y w O u it Eq -$5,000
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Financial Statements ' ภภ2 !- ( ภ' # !- #- +% !- + - ŕ¸
The Income ent m e t a t S
es Revenu $25,000
ent of
eastem ExpenSst ners w 0 O 0 0 , 5 $1 or
equity esd, omeetarnin g in Net IntacinR ed Ea R,e00a 0 1 rnings ya r 0 $1 Janu 0E 0
$10,0 e t incom Add: N0e0 ($ $15,0 dividends : s s Le 5,000) ings, ed ea3rn1 Retainm ber Dece 0 0 0 $20,
Ch2-Financial statement by Nittaya
ce n a l a B The Sheet 0 $100,00
Assets Liabilitie
s
’ Equity Owners
$15,000 $85,000
bilities & 0 Total Lia quity $100,00 E ’ Owners
of t n e m e Stat lows F h s a C
ivities t c a g n i Operat ivities t c a g n i Invest ctivities a g n i c Finan h flow s a c t e N cash g n i n n i Beg cash Ending
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THE BALANCE SHEET , "* ' 3 ภภภ4 * ภ' ) "* , ภภ5 "*ภภ% +% ! ' "* , ภภ& . * 4 * ภ& . period ภ(* 1
The Ba Decem lance Sh ber 31, eet 200 1
Assets $100,00 Liabilit 0 ies Owners $15,000 Equity ’ Total L $85,000 i a b & Own ilities ers’ Eq uity $1 00,000
From the statement of owners’ equity
Ch2-Financial statement by Nittaya
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2 ภ% ( 2 2 . 1. 4$ 2. ! ภ( . 4$ . .. ! = + " Ch2-Financial statement by Nittaya
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6%"
: ภ: ภ: % ภ( 31 " 2544 !"#$%&' !"#$%&'() *+,% !"#$%&.(/'() *+,% !"#$%&012 3
XX XX XX
"+( !"#$%&
XX
(!)* !+,- ./!012345671(85! XX ' ,4 '() *+,% ' ,4 .(/'() *+,% XX XX /+ 506789:10')9 "+(' ,4 ;<= /+ 506 789:10')9 XX
Ch2-Financial statement by Nittaya
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: ภ: ภ: % ภ( 31 " 2544
ŕ¸
!"#$
# !"#$
# Ch2-Financial statement by Nittaya
XXX XXX XXX XXX XXX XXX XXX XXX 21 of 37
ภ! " ! (Current Assets)
! (Assets)
$ â&#x20AC;Ś - - 3 ภ- ( - ?" - (2ภ- (. - ! " ! .*
! " ! (Non-current Assets)
$ â&#x20AC;Ś - * ( ภ- ( ( # ภ2 ! . ! ! " - ! " ! .* Ch2-Financial statement by Nittaya
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ภ( ) " ! (Current Liabilites)
(Liabilities)
$ â&#x20AC;Ś - ภภ4$ - ภ2 !. ! - #$ ! ! - ! ! " * ภ% $%
" ! (Non-current Liabilities)
$ â&#x20AC;Ś - ภ2 !. ! ! "
Ch2-Financial statement by Nittaya
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. (Capital Stock)
" (Ownerâ&#x20AC;&#x2122;s Equity)
$ â&#x20AC;Ś - 4 - @ - " ภ/ *% ภ" 2(
ภ% (Retained Earning) ภ% - % ภB ! - % ! ! ภ% !
Ch2-Financial statement by Nittaya
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THE INCOME STATEMENT ! " ! #$ % $ ภ$ &% ภ' ( ภ)
' ภภภภ*' ภGoes to the statement of retained earnings, statement of owners equity and ultimately the balance sheet.
The In come Statem ent ReJ veannues 1-D$2e5c,00 301, Expen ses20$ 115,000 0 Net Incom e
Ch2-Financial statement by Nittaya
$10,00 0
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ภภ% . ภ% = ! - #$ !
2 ภ% ภ% 1. ภ% !" 2. ภ% ( !
Ch2-Financial statement by Nittaya
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ภ% !"
: ภ: ภ: % ภภ% % ! "( 1 C " * 31 " 2544 : ' ภ". 8 ภ!
+% + ภ& : ( ! +% ภ& ( ) ภภ". 5 ;" ภ". 5 ;" ภ& ' 5 ;"
XXX XXX XXX XXX XXX
Ch2-Financial statement by Nittaya
XXX XXX XXX XXX XXX
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ภ& ; ภ; ภ; & ภ. ภ& (ภภ' ) '& 1 / ' . ' "* 31 ! 2544 ' ภภ& . ภ+% & : ! +% & ภ& ภภ& ภ( ภ) ( +% (* ) ภ& ภภ". 5 ;" ภ". 5 ;" ภ& ' Ch2-Financial statement by Nittaya
XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 28 of 37
STATEMENT OF RETAINED EARNINGS Statem e
ภ" " ภ!
ภ" "
nt of R Earnin etained gs Jan 1Dec 31 , 2001
Retaine January d Earnings, 1 Add: N Less: d et income ividend s Retaine d Decem earnings, ber 31
Goes to balance sheet
Ch2-Financial statement by Nittaya
$15,00 0 $10,00 ($ 5,00 0 0) $20,00 0 From the income statement
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STATEMENT OF CASH FLOWS Cash proffi rom m activakintgies inciotm state e on ment .
ภ!
ŕ¸
ภภภภภภ! ภ' ภภภ'
Stat e Janment of 1-De Cas c 31 h Flo , 199 ws Oper 8 ating activ Inve ities sting a $15, ctivi Fina 000 ties ncin g activ ($3,0 Net ities c 00) Begi ash f l n $ o Endi ning w 20,0 ng c cash 00 ash $32, $28, 000 $60, 000 000
Agrees to the beginning and ending cash on t.he balance sheet
Ch2-Financial statement by Nittaya
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Statement of Cash Flows Income statement
Operating activities
#$ % $ $ ! %
Revenues - Cost of goods sold - Expenses = Net income
Balance sheet Current assets + or Current liabilities + or31 of 37 Ch2-Financial statement by Nittaya
ภภภภภภ500 ' " ! ŕ¸
The expense is reported on the income statement
ce n a l Ba - AssetsBalance et e h S (Cash) Sheet - Owners Equity
$500
ภ( ภ)* * ' ภภ%ภ! +(" ภภภ( , ! % -)( . $ / &
Ch2-Financial statement by Nittaya
(Retained Earnings) Expense $500
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Statement of Cash Flows Investing activities
-+*" 0 0 $ # "+( ภ+% --+*" ! ภ# ( "ภ(& -+*".
Statement of cash flows Cash inflow and outflow on investing activities Balance sheet Cash inflow or outflow on long-term assets
Ch2-Financial statement by Nittaya
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ภภภŕ¸
ภภ+) # , - . % ภ*' ภ3,000
Balance e Balanc + Assets Sheet Sheet
(Computer) -Assets $3,000 (Cash) -'ภ/. $ ภภภ$3,000 ' , $ ภภ+) " , . Ch2-Financial statement by Nittaya
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Statement of Cash Flows
Financing Activities
ŕ¸
) ภŕ¸
' ภภ$ % ภ$ 0 ( ( ) '
Statement of cash flows Cash inflow and outflow on financing activities Balance sheet Cash inflow or outflow on long-term liabilities and ownersâ&#x20AC;&#x2122; equity
Ch2-Financial statement by Nittaya
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ภภภŕ¸
' *' ภ10,000
ce n a l Ba Balance et e h S
+ Assets Sheet (Cash) + Owners Equity $10,000 (Contributed Capital) -'ภ/. ภภภ$10,000 ) ŕ¸
, ภ' ภภCh2-Financial statement by Nittaya
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The End
Ch2-Financial statement by Nittaya
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