ACCOUNTS

ACCOUNTS

1. PROFIT & LOSS

   • Trading performance over time
   • Income
   • Expenditure
   • Operating profit before tax and interest
   • Accruals - whether paid or not
   • Includes depreciation
   • NO capital expenditure

2. BALANCE SHEET

   • SNAPSHOT!
   • Fixed assets
     • Long term TANGIBLE
     • INTANGIBLE eg goodwill
     • SHORT TERM eg cash, debtors
   • Liabilities
     • Long-term - put 1 yr +
     • Short-term eg utilities
   • Net assets = capital employed

3. CASH FLOW STATEMENT

   • Non cash items excluded
   • Differs from P&L- put made or rec'd
   • Inc fixed asset purchase