Financial Statement Integration Exercise

Description
Financial statements are formal records of the financial activities and position of a business, person, or other entity. They typically include three basic financial statements:
1. A balance sheet which reports on a company's assets, liabilities, and equity at a given point in time.
2. An income statement—or profit and loss report (P&L report). A profit and loss statement provides information on the operation of the enterprise. These include sales and the various expenses incurred during the stated period.
3. A cash flow statement reports on a company's cash flow activities, particularly its operating, investing and financing activities over a stated period.
When working on Financial Models, the biggest challenge faced by many is the integration of financial statements i.e mapping the future transactions between the Income Statement, balance sheet and cash flow so that logical flow and arithmetic checks are intact. If the financial statements are integrated properly and works wells than it gives a lot of confidence on the model.

To understand the integration concept, Fin-wiser has developed a user friend exercise which includes 14 business transactions that are very regular in any business. There are two file ‘Financial Statement Integration_Solved’ is the solution to the attached exercise and ‘Financial Statement Integration_Unsolved’ is the file that you can use for practice.

Happy learning!