Author: Joyce Zhou
The Income Statement, Cash Flow, and Balance Sheet are closely related to one another. The Income Statement reports how much revenue a company earns and how much it spent in costs in a specific time period. The Cash Flow shows cash inflows and outflows, whereas the Balance Sheet reports the amount of assets, liabilities, and equity the company has. As a result, companies may have different calculation rules to generate these statements.
The first step to build these reports is to clearly understand the data flow across the accounts in these statements. It's recommended to put all the calculation formulas into a spreadsheet for clarification. In our Sample App-Advanced, we calculate the Cash Flow from the Income Statement and Account Mapping Assumptions, and aggregate the Cash Flow accounts to get the values of the corresponding Balance Sheet accounts. The spreadsheet attached below contains all the related formulas.
In our sample application, you can find them in folder 5-Financial Calcs.