A company's Income Statement, Cash Flow, and Balance Sheet are closely related to one another:
- The Income Statement reports a company's revenues and costs during a time period.
- The Cash Flow shows cash inflows and outflows
- The Balance Sheet reports the company's assets, liabilities, and equity.
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 from 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.