How to Prepare a Cash Flow Statement
It includes all the cash brought in from sales, but not sales made on credit that haven’t actually been paid for. Similarly, it won’t show raw materials and other items that have been purchased on credit but not paid for. In short, cash flow statemen...
Income Statement vs. P&L
The cash activities are instead, recorded on the cash flow statement. The balance sheet and cash flow statement are two of the three financial statements that companies issue to report their financial performance. The financial statements are used by...
Journal entries for inventory transactions
Work in process is also a useful measure for management, because it provides a tool for tracking production flow and costs. The term work-in-progress (WIP) is a production and supply-chain management term describing partially finished goods awaiting ...