Statement of Retained Earnings

Reconciles changes in Retained Earnings

Simple Format:
Beginning of the Period Retained Earnings
Less: Dividends Paid
Plus: Net Income OR
Less: Net Losses
Equals End of the Period Retained Earnings
Bridge between the income statement and the balance sheet
Used almost exclusively for reporting outside the company, not
internally

Sample Statement of Retained Earnings

Still in Good Form!
Bobbis Bakery
Statement of Retained Earnings
For the Year Ended December 31, 2015
Retained Earnings at December 31, 2014

Starts with Last Years amount

from last years balance sheet

$ 1,275

Add: Net Income for the Year Ended December 31, 2015

19,856

Less: Dividends Paid to Shareholders

14,474

Retained Earnings at December 31, 2015

Straight from the

2015 Income Statement

$ 6,657

Should balance to RE
on this years Balance Sheet

OR: Statement of Stockholders Equity

Combination of detailed balance sheet Stockholders Equity

Section and Statement of Retained Earnings
Bobbis Bakery
Statement of Retained Earnings
For the Year Ended December 31, 2015
Ret. Earn

Balance at December 31, 2014

$ 1,275

Additions:

19,856

Subtractions:

14,474

Balance at December 31, 2015

$ 6,657

Com.Stk. 1

Com.Stk. 2

APIC

Statement of Cash Flows

Reconciliation of a companys cash

Starts with the ending cash from last period

Adjusts the cash received and used by three types of

activity:
Operating
Investing
Financing

Ends with the ending cash on the balance sheet for the
current period

Sample Statement of Cash Flows

Good Form Strikes Again!

Bobbis Bakery
Statement of Cash Flows
For the Year Ended December 31, 2015
Cash from Operating Activities
Sources (Net Income)
Uses (Decrease in Accounts Payable )
Cash from Investing Activities
Selling Equipment
Buying Equipment
Cash from Financing Activities
Payment of Dividends
Proceeds from a bank loan
Net change in Cash over the Period
Add: Beginning Cash Balance
Equals: Ending Cash Balance

Examples of sources and

uses of cash from
Operations

Sample Statement of Cash Flows

Bobbis Bakery
Statement of Cash Flows
For the Year Ended December 31, 2015
Cash from Operating Activities
Sources (Net Income)
Uses (Decrease in Accounts Payable )
Cash from Investing Activities
Selling Equipment
Buying Equipment

Examples of sources and

uses of cash from Investing Activities

Cash from Financing Activities

Payment of Dividends
Proceeds from a bank loan
Net change in Cash over the Period
Add: Beginning Cash Balance
Equals: Ending Cash Balance

Examples of sources and

uses of cash from Investing Activities

Notes to the Financials: Not a

statement but critically important

Stories behind the numbers

Disclosures of critical information

Disclosures of legally required information

Sample Notes
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting

The accompanying financial statements have been prepared in accordance with the
Financial Reporting Framework for Small- and Medium-Sized Entities issued by the American
Institute of Certified Public Accountants, which is a special purpose framework and not U.S.
generally accepted accounting principles (U.S.GAAP). The accounting principles comprising
the framework are appropriate for the preparation and presentation of small- and mediumsized entity financial statements, based on the needs of the financial statement users and cost
and benefit considerations. This special purpose framework, unlike U.S. GAAP, does not require
the recognition of deferred taxes. We have chosen the option to recognize only current income
tax assets and liabilities.
Nature of Operations
The Company is engaged in the construction of industrial and commercial buildings
primarily in the southeastern region of the United States. The Company's work is performed
under cost-plus-fee contracts, fixed-price contracts, and fixed-price contracts modified by
incentive and penalty provisions. These contracts are undertaken by the Company or its wholly
owned subsidiary alone or in partnership with other contractors through joint ventures. The
length of the Company's contracts varies but is typically about two years. The Company follows
the practice of filing statutory liens on all construction projects when collection problems are
anticipated. The liens serve as collateral for contracts receivable.

Thank you!