A financial statement has four components: balance sheet, income statement, cash flow statement and statement of shareholders' equity. The balance sheet is a statement of what the business owns ...

For the balance sheet, it’s the total amount of income to be received that’s logged into the books at the close of the fiscal year. Inventory is derived from the cost of goods table.

In part two of our three-part series on financial statements, we look at what a balance sheet is, why they matter to investors and how they can help you invest in the stock market.

Understanding how the income statement affects the balance sheet is not that difficult. The two concepts fit together like pieces of a dynamic puzzle. In this case, the puzzle is the financial ...