Reading your Financial Statements (3 of 3)
There are three major financial statements, the Balance Sheet, Income Statements (sometimes referred to as Profit & Loss), and the Statement of Cash Flows. A fourth financial statement, the Statement of Shareholders Equity isn’t regularly prepared for a small business because there usually aren’t multiple classes of shareholders, and unrealized gains and losses typically aren’t tracked. The Statement of Shareholders’ Equity is basically an addendum to the Balance Sheet. The