Overview of Financial Statements

After preparing your adjusted trial balance, the next step in the accounting cycle is to prepare your financial statements. Learn about the balance sheet, income statement, statement of cash flow, and retained earnings statement in this tutorial. Continue reading

Price to Earnings or PE Ratio

The price to earnings ratio (or PE ratio) relates market price to earnings per share. This interactive tutorial explains the concept by walking you through the calculations, including where to find the numbers on the financial statements. Continue reading

Dividend Payout Ratio

The dividend payout ratio shows the portion of earnings distributed to stockholders. This interactive tutorial explains the concept by walking you through the calculations, including where to find the numbers on the income statement and cash flow statement. Continue reading

Income Statement, Single Step

Learn about the structure and contents of a single-step income statement by examining one for the fictitious company Bogus Manufacturing, Inc. Continue reading

Income Statement, Multi-Step

Learn about the structure and contents of a multi-step income statement by examining one for the fictitious company Bogus Manufacturing, Inc. Continue reading