Beginner's Guide to Financial statements

The three financial statements that most companies include in their annual reports are the balance sheet, the income statement and the statement of cash flows.

The balance sheet also known as the statement of financial position or statement reports what the company owns(its assets), what it owes(its liabilities), and the value of stockholder’s interest(owners’ equity) at a moment in time.

The income statement also known as the statement of operations or profit and loss statement reports the money received by the company (revenues), money spent by the company (expenditures) during the reporting period.

The statement of cash flows summarizes where company funds came from and where they were used.

BALANCE SHEET

· It provides information on the financial strengths and weakness of the company.

· You can learn about the company’s ability to satisfy its creditors, mange its inventory and collect the receivables.

· You can see whether the company can easily handle the normal financial ebbs and flows of revenues and expenses, or whether it needs to bolster its cash reserves.

· You can analyze and identify trends, especially in receivables and payables that may need attention.

INCOME STATEMENT

· It provides information on revenues and expenditures. You can use the income statement to determine the operating performance of your company over a period of time.

· You can find out what areas are over or under budget.
You can identify specific items that are causing unnecessary expenditures.

· You can track increases in product returns or cost of goods sold as percentage of sales.

· You can determine income tax liability.

· Together, balance sheets and income statements provide financial information to potential lenders, such as banks, investors and vendors who are considering how much credit to grant the company.

STATEMENT OF CASH FLOWS

· It provides information on where the company acquired its money from and where the money was spent.

· You can use cash flow statements to forecast cash requirements, to identify financing needs, to locate cash drains, and to identify problems in cash budgeting process.

· It can be used to identify cash shortages and surpluses.

Amazing facts

• 14 out of 45 vice presidents of the US have become Presidents!
• The world's oldest existing governing body operates in Althing in Iceland.It was established in 930 A.D
• The world's first democracy was introduced 2,500 years ago in Athens in Greece.Today,the world's largest democracy is India,with over 600 million voters.
• The United Nations organisation(UN) first came into being after the World War II,in 1945
• The shortest term as President was served by William Henry Harrison.He served for 32 days,from 4 March to 4 April 1841.

Some Essential Health Tips

1. Shake your Body!

Every day find new ways to move your body. Use the stairs rather than an escalator or elevator. Walk your dog (or a neighbor’s dog if you don't have one!) , chase your kids, play ball with friends, mow the lawn. Anything that moves your limbs is not only a fitness tool, it's a stress buster.

2. Cut the Fat

Don't eat fat rich foods such as fried foods, burgers and other fatty meats. Eat dairy products like cheese, cottage cheese, milk and cream having low fat versions.

3. Reduce Stress

Stress busters come in many forms. Some techniques recommended by experts are to think positive thoughts. Spend 30 minutes a day doing something you like. (i.e., go back to number one above!, exercise is a great stress reducer, Soak in a hot tub; walk on the beach or in a park; read a good book; visit a friend; play with your dog; listen to soothing music; watch a funny movie).

4. Stop Smoking

All the experts agree on this one. Ever since 1960 when it was announced that smoking was harmful to your health, people have been reducing their use of tobacco products. Just recently, we've seen a surge in smoking in adolescents and teens.

5. Reduce your exposure to Pollution

Not everyone can live in a smog-free environment, but we can all avoid smoke-filled rooms, high traffic areas, breathing in highway fumes and exercising near busy thoroughfares.

6. Take precautions

Statistics show that the wearing of seat belts add to longevity and help alleviate potential injuries in car crashes.

7. Don't drink too Much Alcohol

It is true that a glass of wine or one drink a day (two for men) can help protect against heart disease, more alcohol than that, or binge drinking on a night out, can cause other serious health problems such as liver and kidney disease and cancer.

8. Floss Your Teeth

Harvard Medical School studied longevity and found one of the most important contributing factors was daily flossing! Flossing and brushing your teeth daily can make your real Age as much as 6.4 years younger.

9. Maintain a Positive Mental Outlook

There's a definitive connection between living well and healthily and having a cheerful outlook on life. Yes, keep on smiling and laughing!

10. Pick Your Parents Well!

The link between genetics and health is a powerful one. You can't pick your parents, but just because one or both of your parents died young in ill health doesn't mean you can't counteract the genetic pool handed you. So follow the first 9 tips above

No Fizz for Kids

If your child loves sweet drinks and avoids water, it’s time to take action. A study published in US magazine Pediatrics suggests that a fizzy drink a day could equate to about 6 kilos a year in weight gain.”Swap sugary drinks for pure fruit juice, says Annie Seeley, registered public health nutritionist.Dilute the juice until its just water. Avoid juice drinks as these can contain as little as 5% fruit juice. And remember, you decide what goes in the fridge, so if you don’t buy fizzy drinks they can’t have them.