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Overview of Financial Statements
FIN/575
, 2
Overview of Financial Statements
Lifetouch Inc. is a photography company that allows its photographers to shoot in a
studio and on location. Over the years the company has ceased to move forward ending in 2017,
luckily it was acquired by another company right before they closed. The photography business
has always been a passion and to see the financial statements from a failed company can help to
create the chances of not recreating the same mistakes. This paper will identify the salient
information from the financial statements of Lifetouch Inc. Next, this paper will identify the
company's net income, total assets, and total net cash flow. Then, it will explain how financial
statements are connected. Lastly, this paper will examine how financial statements are important
to the entrepreneur.
Lifetouch Inc. Financial Statements
The three important parts of the financial statements are the income statement, balance
sheet, and the statement of cash flow they all provide information about a company's accounting
period over a specific time (Chen, 2019). The income statement mainly concentrates on the
revenues and expenses for the company during a specific period (Chen, 2019). The balance sheet
shows the company's assets such as the liabilities and net worth (Investopedia Staff, 2019). The
statement of the cash flow will reveal information regarding the cash inflows that the company
has reviewed from its operations and external investments (Kenton, 2019).
Net Income, Total Assets, and Total Net Cash Flow
The information that is found on the income statement would be the revenue, expenses,
the gains, and the losses. Looking at Lifetouch’s financial statements it shows that the revenue
from 2016 was $24,017, the total expenses were $2,635, the gains from the prior year were
$7,406 and the losses for 2016 were $192 (Sec.Gov, 2017).
Overview of Financial Statements
FIN/575
, 2
Overview of Financial Statements
Lifetouch Inc. is a photography company that allows its photographers to shoot in a
studio and on location. Over the years the company has ceased to move forward ending in 2017,
luckily it was acquired by another company right before they closed. The photography business
has always been a passion and to see the financial statements from a failed company can help to
create the chances of not recreating the same mistakes. This paper will identify the salient
information from the financial statements of Lifetouch Inc. Next, this paper will identify the
company's net income, total assets, and total net cash flow. Then, it will explain how financial
statements are connected. Lastly, this paper will examine how financial statements are important
to the entrepreneur.
Lifetouch Inc. Financial Statements
The three important parts of the financial statements are the income statement, balance
sheet, and the statement of cash flow they all provide information about a company's accounting
period over a specific time (Chen, 2019). The income statement mainly concentrates on the
revenues and expenses for the company during a specific period (Chen, 2019). The balance sheet
shows the company's assets such as the liabilities and net worth (Investopedia Staff, 2019). The
statement of the cash flow will reveal information regarding the cash inflows that the company
has reviewed from its operations and external investments (Kenton, 2019).
Net Income, Total Assets, and Total Net Cash Flow
The information that is found on the income statement would be the revenue, expenses,
the gains, and the losses. Looking at Lifetouch’s financial statements it shows that the revenue
from 2016 was $24,017, the total expenses were $2,635, the gains from the prior year were
$7,406 and the losses for 2016 were $192 (Sec.Gov, 2017).
