E: info@risleycpa.com / T: (505)325-5156
Client Portal Login    Subscribe
Farmington, NM CPA Firm | Financial Statements Page | Risley CPA, PC
  • Home
  • About
    • Firm Profile
    • Our Team
      • Annette L Risley, CPA, CQBPA
      • Juli Bacon
      • Traci Barboa
      • Irma Layman
    • Certifications & Associations
    • Industries We Serve
    • Client Satisfaction Survey
  • Services
    • Services For Individuals
      • Personal Financial Planning
      • Estate Planning
      • Elder Care
    • Business Services
      • Small Business Accounting
      • Payroll
      • Part-Time CFO Services
      • Financial Statements
      • Cash Flow Management
      • Bank Financing
      • Succession Planning
      • New Business Formation
      • Non-Profit Organizations
      • Internal Controls
      • Litigation Support
    • Tax Services
      • Tax Preparation
      • Tax Planning
      • Tax Problems
        • IRS Audit Representation
        • Non-Filed Tax Returns
        • Back Taxes Owed
        • Payroll Tax Problems
        • IRS Liens
        • IRS Levies
        • IRS Wage Garnishment
        • IRS Seizures
        • Offer In Compromise
        • IRS Payment Plan
        • Bankruptcy
        • Innocent Spouse Relief
        • Get Your IRS File
    • QuickBooks Services
      • Why QuickBooks
      • QuickBooks Setup
      • QuickBooks Training
      • QuickAnswers
      • QuickBooks Tips
      • QuickTune-up
      • Buy QuickBooks and Save
  • Client Center
    • Newsletter
      • This Month's Newsletter
      • Previous Newsletters
      • Today's News and Weather
    • Guides
      • Life Events
      • Business Strategies
      • Investment Strategies
      • Tax Strategies for Business Owners
      • Tax Strategies for Individuals
      • Frequently Asked Questions
    • Tax Center
      • Track Your Refund
      • Tax Due Dates
        • Federal Tax Due Dates
        • State Tax Due Dates - New Mexico
      • Tax Rates
      • IRS Tax Forms and Publications
      • Record Retention Guide
      • State Tax Forms
      • 1040 Tax Calculator
      • Marginal and Effective Tax Rates Calculator
    • Resources
      • Calculators
      • Internet Links
      • News and Weather
  • Seminars
  • Tax Organizer
  • Contact

Financial Statements

Call Us: (505)325-5156
  • broad range of CPA services
    We help you take charge of your finances to ensure a sound and secure future. Read more
  • Risley CPA, PC
    Count on us to take the worry, leaving you to do what you do best. Read more
  • Secure client portal
    Providing the support you deserve.
  • Small enough
    As a valued client, you get a secure, password-protected portal. Read more

Our Services

We offer a broad range of services for business owners, executives and independent professionals. Please call us for a free initial consultation.

Newsletter

About Us

Use our convenient SecureSend page to securely deliver a file directly to a member of our firm.

Send Us a File

Send Us a File (Portal Login)

As a valued client, you get a secure, password-protected portal to store and access your important financial documents from anywhere at any time.

Reports

Tax Organizer

Guides

Featured Articles


Rate Us
Financial Statements

Financial Statements


We, at Risley, CPA, provide financial statement preparation services for our clients for use by management and others closely related to the company.  These financial statements are neither compiled, reviewed or audited.  

The purpose of Financial Statements is to provide information about the financial position, performance and changes in financial position of a company that is useful in making economic decisions.  Financial Statements should be understandable, relevant, reliable and comparable.  

The basic Financial Statements of a company include the 1) Balance Sheet, 2) Income Statement, 3) Cash Flow Statement, and 4) Statement of Retained Earnings.

Balance Sheet (Statement of Financial Position)

The Balance Sheet presents the financial position of a company at a given date.  It is comprised of the following three elements:

  • Assets:  Something a business owns or controls (i.g. cash, inventory, machinery & equipment, etc)
  • Liabilities:  Something a business owes to someone (e.g. creditors, bank loans, etc)
  • Equity:  What the business owes to its owners.  This represents the amount of capital that remains in the business after its assets are used to pay off its outstanding liabilities.  Equity, therefore, represents the difference between the assets and liabilities.  

Income Statement (Profit & Loss Statement)

The Income Statement reports the company's financial performance in terms of net profit or loss over a specified period.  The Income Statement is composed of the following two elements:

  • Income:  What the business has earned over a period (e.g. sales revenue, dividend income, etc)
  • Expense:  The cost incurred by the business over a period (e.g. salaries and wages, operating expenses, depreciation, etc)

Net profit or loss is arrived by deducting expenses from income.

Cash Flow Statement

The Cash Flow Statement presents the movement in cash and bank balances over a period.  The movement in cash flows is classified into the following segments:

  • Operating Activities:  Represents the cash flow from primary activities of a business
  • Investing Activities:  Represents cash flow from the purchase and sale of assets other than inventories (e.g. purchase of large equipment)
  • Financing Activities:  Represents cash flow generated or spent on raising and repaying share capital and debt together with the payments of interest and dividends.

Statement of Changes in Equity (Statement of Retained Earnings) 

The Statement of Changes in Equity details the movement in owners' equity over a period of time.  The movement in owners' equity is derived from the following components:

  • Net profit or loss during the period as reported in the Income Statement
  • Share capital issued or repaid during the period
  • Dividend payments
  • Gains or losses recognized directly in equity (e.g. revaluation surpluses)
  • Effects of a change in accounting policy or correction of accounting error

Understanding the value of a company's Financial Statements is an integral part of management decision-making. Please call if you would like to learn more about Financial Statements, or complete the form below for a Free Consultation.

Name
Phone
Email
Best Time To Call
Comments
CAPTCHA Image

[ Show a different Image ]
Texas Board of Public Accountancy Member of AICPA National Association of Certified Quickbooks Advisor National Directory of Tax Professionals New Mexico CPA Society QuickBooks Certified ProAdvisor - QuickBooks Certification QuickBooks Certified ProAdvisor - QuickBooks Online Certification
Risley CPA, PC 2705 Rabbitbrush Dr. Farmington, NM  87402
Phone: (505)325-5156 | Fax: (505)327-5007
info@risleycpa.com
Login   Search   Site Map   Privacy Policy   Disclaimer   
_yhg4r5npStDx0-47KCTF_cPWzImhjYRw1SuM98Ulns=.html