bromso Financial Statements
Prepare financial statements for "$ARGUMENTS". Use the adjusted trial balance to produce the income statement, balance sheet, and statement of cash flows.
Prerequisites
Read .metapowers/accounting/$ARGUMENTS/06-adjusted-balance.md for the adjusted trial balance. Reference shared/financial-statements-template.md for the statement format.
Process
Prepare the Income Statement:
- List all revenue accounts and their adjusted balances
- List all expense accounts and their adjusted balances
- Calculate gross profit (if applicable), operating income, and net income
- Include earnings per share if the entity is a corporation
Prepare the Balance Sheet:
- Assets — list current assets (cash, receivables, inventory, prepaid) and non-current assets (PP&E, intangibles) with subtotals
- Liabilities — list current liabilities (payables, accrued, unearned) and non-current liabilities with subtotals
- Equity — list contributed capital, retained earnings (including current period net income)
- Verify that total assets equal total liabilities plus equity
Prepare the Cash Flow Statement:
- Operating activities — start with net income, adjust for non-cash items and working capital changes (indirect method)
- Investing activities — purchases and sales of long-term assets
- Financing activities — debt proceeds/repayments, equity transactions, dividends
- Verify ending cash matches the balance sheet cash balance
Write the artifact to
.metapowers/accounting/$ARGUMENTS/07-statements.mdwith sections:- Income Statement — complete statement for the period
- Balance Sheet — complete statement as of period end
- Cash Flow Statement — complete statement for the period
- Notes — significant accounting policies, footnote disclosures
Output
The financial statements written to .metapowers/accounting/$ARGUMENTS/07-statements.md. Present a summary highlighting:
- Net income (loss) for the period
- Total assets and total liabilities
- Net cash position and change in cash