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Quick Guide to Financial Statements

Financial statements provide a company, as well as anyone else who might be interested (such as investors or lenders), with information about the value of their company. This includes income and assets during a particular accounting period, as well as its assets, liabilities, and equity at a certain point in time.

Statements will generally consist of balance sheets, income statements, and a cash flow statement. Some companies may also choose to include a statement of stockholders’ equity as well as a statement of comprehensive income. Income statements may also be referred to as an operations statement, a statement of profit and loss, or an earnings statement.

Sample Description of Financial Statements

"We need an e-commerce website for our clothing company. - Currently www.yourbusiness.com. Our products change on a regular basis, so we need to be able to easily change text, pictures, prices, and product descriptions. We currently sell 40 unique products. We have a budget of $2,000-5,000, but we are looking for the best price. We would like to launch the site within 60 days."