Financial Statements Integration

Example: Yr1 Yr2 Yr3

Profit and Loss Sales Workings

Costs (-)
Net Income Balance Sheet workings
❶ Retained earnings Receivable
Open
Balance Sheet plus
Cash ❷ minus (-)
Receivable Close
Assets
Payable
Payable Open
❶ Retained earnings plus
Liabilities & Equity minus (-)
Close
Check

Cash Flow Statement Received (Sales)

Paid (Costs)
Cash
Cash cumulative ❷
Financial Statements Integration

Example: 2015 2016 2017

Profit and Loss Sales 100 120 140 Workings

Costs (-) (55) 0 0
Net Income 45 120 140 Balance Sheet workings
❶ Retained earnings 45 165 305 Receivable
Open 0 30 75
Balance Sheet plus 100 120 140
Cash 50 125 205 ❷ minus (-) (70) (75) (80)
Receivable 30 75 135 Close 30 75 135
Assets 80 200 340
Payable
Payable 35 35 35 Open 0 35 35
❶ Retained earnings 45 165 305 plus 55 0 0
Liabilities & Equity 80 200 340 minus (-) (20) 0 0
Close 35 35 35
Check 0 0 0

Cash Flow Statement Net Income 45 120 140

+/-Receivable (30) (45) (60)
+/-Payable 35 0 0
Cash 50 75 80
Cash cumulative 50 125 205 ❷