How to Understand and Read a Financial Statement

A financial statement is a corporations annual report, it is made up four parts and it alot easier to read and understand when you understand what your are looking at. To find out what the four parts are read below.
Instructions
1The Balance sheet is the first thing your should find. You should be able to find what the assets, liabilities, and stockholders equity is from the balance sheet. This is usually broke down yearly and will be a review of the years financial position.
Step2The income (sometimes called Earnings) statement is made up of revenues, expenses, net profit and or losses, and net profit or loss per share during that particular period.
Step3The statement of stockholders equity is made up of the beginning and ending balances of all the accounts that are in the stockholders' s equity section of the balance sheet.
Step4Statement of Cash Flows has information about the cash inflows and overflows from the operating, financing, and investing activities during the period being reported.