The document discusses three key financial statements: 1) The balance sheet presents the value of a company's assets and liabilities at a point in time. 2) The profit and loss (P&L) statement measures the profit generated over a period of time, though profit is an accounting opinion based on principles. 3) The cash flow statement shows cash inflows and outflows over time, including from profit, investments, and expenses.

1. Profit and Loss, Balance Sheet and Cash Flow Statements Balance Sheet – Present The value of a company at a certain point in time. Statement of Assets and Liabilities. Profit and Loss Statement – History Measures and reports Profit generated during a certain period. Profit/Loss is an opinion, based on Accounting Principles. Cash Flow – Future Statement showing cash generation (inflow) and cash usage (outflow) GeographyIshistory.com

2. Profit and Loss statement Operating Profit Sales adjustment Discounts and free of charge items Operating Expenses – Admin & General Operating Expenses – Sales & Marketing Operating Expenses – R&D Capital cost & Taxes $$Profit$$ Gross Sales Net Sales Gross Margin Net Profit Cost of sales or Cost of Goods and Services provided Material, Resources, Sub-contracting, Freight, Royalties, SW licencies P&L statement Sales -Cost of goods sold Gross margin -Operating Expenses Administration Marketing R&D Operating profit GeographyIshistory.com

4. Cash Flow Cash From Profit From Balance Sheet To investment To Expenses GeographyIshistory.com