RAPID

REVIEW
Financial
aration Statements
Retained Earnings Statement

ype Date Name of Company

Retained Earnings Statement
Order of Preptatement For the period ended For the Period Ended

Statement earnings
T statement For the period ended Retained earnings, beginning of period $
Add: Net income (or deduct net loss)
1. heet
Income s As of the end of the period

of cash flows For the period ended Deduct: Dividends

2.
Retained Retained earnings, end of period $X
X
ent (perpetual inventory system)
3. X
STOP AND CHECK: Net income (loss) presented on the retained
Balance s X
earnings statem
Name of Company X
4. must equal the net income (loss) presented on the income statement.
Statement Income Statement
For the Period Ended Balance Sheet en
Income t
nues Name of Company
Statem
$ X Balance
Sheet
les returns and allowances X As of the End of the Period
les discounts X
Sales $ X
reve
Sales
Assets
Less:
Sa ods sold X
Current assets
Safit X
(Examples: cash, short-term investments, accounts
Net expenses receivable, merchandise inventory, prepaids) $
salesmples: store salaries, advertising, delivery, rent, Long-term investments
Cost of ciation, utilities, insurance) X X
(Examples: investments in bonds, investments in stocks)
go om operations X
Property, plant, and equipment X
Gross proenues and gains Land $X
Operatingles: interest, gains) X
Buildings and equipment $X
(Exa enses and losses Less: Accumulated depreciation X X
depreles: interest, losses) X X
Intangible assets X
Income fore income taxes X
Total assets $X
fr expense X X
Other $X
rev Liabilities and Stockholders’
Equity
(Examp
ent (periodic inventory system)
Other Liabilities
exp Current liabilities
Name of Company
(Examp (Examples: notes payable, accounts payable,
Income Statement
Income accruals,
be unearned revenues, current portion of notes payable) $
For the Period Ended
Income Long-term
tax liabilities
Net nues (Examples: notes payable, bonds payable)
income $ X Total
liabilities
les returns and allowances
Income Statem X Stockholders’ equity
les discounts X Common stock
$ X Retained
earnings
ods sold Total liabilities and stockholders’ equity $X
ng inventory X
Sales fr
es $X STOPOther
AND rev
CHECK: Total assets on the balance sheet must equal total
reve
liabilities urchase returns and allowances X stockholders’ equity; and, ending retained earnings on the balance sheet
Sales must equ chases X (Exampearnings on the retained earnings statement.
ending retained
Less: eight in X Other exp
Sa oods purchased X (Examp
Statement of Cash
Sa Flows oods available for sale X
Income be
nding inventory X Name of Company
Net Income tax
goods sold X Statement of Cash Flows
sales Net income $X
fit X For the Period Ended
Cost of
expenses
go Cash flows from operating activities
mples: store salaries, advertising, delivery, rent,
Beginni Note: May be prepared using the direct or indirect method
ciation, utilities, insurance) X
Purchas
Less: P
Net pur
Add: Fr
Cost of
g
Cost of
g
Less: E
Cost of
Gross pro
Operating
(Exa
depre
Income
 X

X X

X X

a Net cash provided (used) by financing activities X

n
Net increase (decrease) in cash X
d Cash, beginning of the period X
a
Cash, end of the period $X
l

STOP AND CHECK: Cash, end of the period, on the statement of cash
flows must equal cash presented on the balance sheet.

EP-5