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Request permission to reuse content from this site. Rent Buy. Richard G. Both external and internal users take help of financial accounting for decision making. Comment 0. Formulas used in above calculations are as following: View Student Companion Site.
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Comment 0. Income statement for C Company is as following: Formulas used in above calculation are as following Cost of goods sold is calculated as following: Depreciation of computer is calculated as following: Depreciation of sewing machine is calculated as following: From the Income statement C Company is considered profitable.
Cash flow statement for 3 months is prepared as following: Formulas used in above calculations are as following: Few reasons for declining cash balance could be as following: More inventories are bought in cash.
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