MIS 302F Chapter Notes - Chapter 3: Financial Statement, Retained Earnings, Net Income

• School: UT-Austin
• Department: Management Information Systems
• Course: MIS 302F
• Professor: Tuttle Clint

Document Summary

Companies prepare four financial statements from the summarized accounting data: An income statement presents the revenues and expenses and statement resulting net income or net loss for a specific period of time. A retained earnings statement summarizes the changes in earnings retained earnings for a specific period of time. statement. A balance sheet reports the assets, liabilities, and stockholders" equity of a company at a specific date. A statement of cash flows summarizes information about the cash flows cash inflows (receipts) and outflows (payments) for a specific period of time. These statements provide relevant financial data for internal and external users. The following graphic shows the financial statements of softbyte inc. Net income of ,750 on the income statement is added to the beginning balance of retained earnings in the retained earnings statement. Retained earnings of ,450 at the end of the reporting period shown in the retained earnings statement is reported on the balance sheet.