A balance sheet summarizes what a company owns and owes. Revenue feeds into the accounts receivable and cash line item summaries on the balance sheet, sometimes known as "financial assets," depending on the report template used. Make a note that these line items include outstanding money due and money paid to the company for the report period. To find the specific revenue information for the period, look in the package that contains the balance sheet for the income and expense statement. This reports breaks out the revenue for the period as a separate line entry.
Items you will need
- Income and expense statement,
- Profit and loss statement or
- Revenue and expense statement
Ask the accounting department for the rest of the reports if you only received a balance sheet. Accountants prepare a series of financial reports submitted monthly to management, including the balance sheet, the income and expense statement, the shareholder's equity statement and the statement of cash flow. All these reports together make up the reporting for the given period and fully represent the company's status for the period.
Review the reports to find the income and expense statement. If you can't find the income and expense statement, look instead for the profit and loss statement, or the revenue and expense statement. Each company may call its reports by a slightly different name. The report you need to review to find specific revenue for the period is the monthly, quarterly or annual statement that delineates income and expenses for the period.
Note the top half of the report refers to the income generated for the reporting period. Depending on the detail of the report, revenue will be listed as "Revenue," "Gross Sales," "Net Sales," or "Income." This is a summarized figure and may include all or a part of the revenue streams for the company.
Subtract the cost of goods sold from the revenue for the period to obtain the company's gross profit. The gross profit does not include any other operating, overhead or fixed costs. The cost of goods sold includes inventory, raw materials and the direct labor responsible for the manufacturing of the company's product.
For detail on the summarized items found on an income and expense statement, contact the accounting department for additional reports. Each line item on an income and expense statement is only a summary of several items that total up to the number for the reporting period. While revenue for the period is included on the balance sheet in the accounts receivable and cash line items on the balance sheet, this is not an accurate reflection of the period's revenue, as it includes all money due and paid to the company, even from prior periods.
Private companies consider financial reports to be confidential information and do not distribute these reports freely. Publicly traded companies, by law, must provide this information at regular intervals to stockholders.
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