Understand three types of financial statements Let's use this example Understand these statements I think you can understand this example Now let's calculate for the second month Here are some suggestions on how to look or get an appointment for antique items It is written below So it even looks like a real statement So here's the second month's financial statement In that month, we will There is $ 400 in income and $ 200 in expenses $ 400- $ 200 net income of $ 200 The financial statements are for a period of time He also said what happened Income How much does it cost and so on? This is just a simple list Taxes Without interest and other expenses The end of the first month and the second month The balance sheet is drawn here Or you can view the balance sheet here This is the balance sheet at the beginning of the second month The main thing is the financial statement To know what happens over a period of time When the balance sheet is given When you can see quickly and clearly That's what we had Basically speaking What we own is our future It provides benefits You have to pay for the future Payments or loans So this is something that exists and this is a loan The balance is one of the things It is the deduction of borrowed things The second begins at the end of the first month I have $ 100.
Not available I did not lend to anyone We do not lend money. And service So $ 100 – 0 means if you have $ 100 Company owners at the beginning of the month It can be said that it is worth it At the end of the second month I have a $ 100 loan from a bank So I'm going to put minus $ 100 in here Ordinarily, the remnants of real companies The report does not say so. But if you have $ 400 owed Current assets total $ 300 Receivables are not property Someone got something from me. It is simply a matter of borrowing money in the future I do not have any So out of all the assets Subtract all the receivables You have $ 300 left over You can see it here now At the beginning of the month, the balance is $ 100 At the end of the month, there is a balance of $ 300 So to go from here to here To go from $ 100 to $ 300 I need $ 200 in balance You have to get $ 200 somewhere This is shown in the financial statements It's called balancing Shown here Sometimes the net income changes or Only balance is changed $ 200 Net Income The company gets it in no time.
Now there is one thing that confuses you How to balance everything with money You get $ 200 over a period of time I know But in terms of money, plus $ 100 Minus $ 100 It looks like $ 200 is missing So how do you get started claiming $ 200? Missing $ 200 How to adjust? This negotiation is on the income statement Will do I'll do it in the next video.