Income statement and balance sheet comparisons

Comparison between a Balance Sheet and an Income ment Comparison between a Balance Sheet and an Income Statement Introduction An income statement, on the other hand, shows how much money a company gained or lost during a particular period.

The key difference between balance sheet and cash flow statement is that a balance sheet shows the assets, liabilities, and equity of the business as at a particular point of time whereas a cash flow statement shows how movements in assets, liabilities, income and expenses affect the cash position. Along with other financial information, balance sheet data is frequently analyzed and put into perspective through the construction of business and financial ratios. In many cases, ratios are constructed for each balance sheet (and income statement) for a number of years, so that you can make comparisons and spot important trends.

How to Analyze a Profit and Loss (P&L) Sheet. ... income statement, earnings statement, revenue statement, operating statement, statement of operations, and statement ... Ten years of annual and quarterly income statements for Amazon (AMZN). The income statement summarizes the revenues, expenses and profit generated by a business over an annual or quarterly period. A balance sheet lists assets and liabilities of the organization as of a specific moment in time, i.e. as of a certain date. An income statement — also called a profit and loss account or P&L statement is a report for income and expenses over a specific time period, usually a quarter or year. A company with strong income statements year over year will generally build a healthy balance sheet but it is possible that it may have a strong balance sheet but weak income or vice versa.

Feb 05, 2007 · While an income statement can tell you whether a company made a profit, a cash flow statement can tell you whether the company generated cash. A cash flow statement shows changes over time rather than absolute dollar amounts at a point in time. It uses and reorders the information from a company’s balance sheet and income statement.