Specific financial statements showing the company’s revenues and expenses during a Accounting Period:
| Revenue | Sum of all submitted invoices | |
|---|---|---|
| Expenses | Cost of sales and purchase/production of sold products | |
| EBIT | = Revenue - Expenses | Earnings before interest and taxes |
| EBT | = EBIT - Interest | |
| Net Income | = EBT − Income Tax | |
| Retained earnings | = Net Income − Dividends | |
| Free Cash Flow | = Net Income+/- Changes in working capital (changes in current assets – changes in current liabilities) +/- Changes in the gross book value of Fixed assets (in other words purchase of fixed assets. Fixed assets being equipment, machinery, R&D, etc…) | |
| Cash Balance | Previous Cash Balance + FCF − Dividends + Loans |
See also
Business / Business Administration / Financial Management / Financial Accounting