Preparing a Classified Balance Sheet:

In this post, you will learn everything related to the classified balance sheet, including what it is, how to prepare it, format, and example.

Many professionals use this method to obtain more comprehensive information related to their business.

Here you will learn how to prepare a classified balance sheet with examples.

So let’s start.

Variable Costing Income Statement: What Is It and How to Prepare

Format of the variable costing income statement

The variable costing income statement provides valuable insights to improve a company’s financial position.

It offers insights into product variable costs and aids in making decisions regarding them.

In this article, you will learn everything about the variable costing income statement, including its format, how to create it, and examples.

Let’s dive into the article.

Projected Balance Sheet: Comprehensive Guide

A projected balance sheet is important for any business for forecasting the assets and liabilities of the company.

It is used by many individuals, including banks for loan approval, internal teams for three-year forecasts, and investors to find profitable companies.

In this article, I included everything related to the projected balance sheet, including what it is, how to prepare it, an Excel format, and examples too

Condensed Income Statement: What It Is | Format | Example

Example of condensed income statement

A condensed income statement is a version of the income statement that summarises all items into a few key categories.

It includes fewer items compared to the traditional income statement. The condensed income statement includes revenue, cost of goods sold, all expenses, and net income.

Whereas the traditional income statement has an expanded view of these items, such as every expense and every source of revenue.

Manufacturing Income Statement: How to Create and Format

Are you struggling to create your manufacturing income statement or confused about a merchandise income statement?

All your doubts will be cleared in this article. I’ve included information on what a manufacturing income statement is, its format, three different inventory schedules, and how to create it.

Let’s dive into the article.

What Is a Comparative Balance Sheet: Format and Example

Balance sheet rule, Assets = Liabilities + Shareholders' Equity

Financial statements can include the income statement, cash flow statement, and balance sheet. The comparative balance sheet is one of the fundamental tool for analysing a company.

While a traditional balance sheet shows the financial position, a comparative balance sheet is superior, offering advanced analysis of the company.

Here, you will learn about the comparative balance sheet, its format, examples, and how to compare it.

So, let’s explore the sheet.

Free Cash Flow Conversion (Formula and Example)

Formula of free cash flow conversion

Free cash flow conversion is a liquidity ratio used by both investors and the management team to manage cash flow effectively.

Imagine your company has sales that skyrocket, but on the other hand, the company does not have enough funds to pay debts, run the business, and cover expenses.

Here is free cash flow conversion tells us about a company’s effectiveness in converting its profit into cash.

In this article, I’ve included everything related to FCF conversion. So if you want to learn about what FCF conversion is, its formula, how to calculate it, and how to improve it, then you will like this post.

Guide to Understanding the Comprehensive Income Statement

Understanding the income statement provides insights into a company’s revenue and expenses. However, it doesn’t offer a complete view of the company’s profitability, as it excludes unrealized income.

The statement of comprehensive income includes both net income from the income statement and other comprehensive income. This combination provides a more accurate representation of the company’s profit.

In this article, we will explore what the statement of comprehensive income is, what it includes, its relationship with other comprehensive income, and provide a real-life example for better understanding.

Incremental Cash Flow: Definition, Formula, and Example


Understanding incremental cash flow (ICF) is important for any organization, especially those considering to invest in new projects. Without calculating the cash flow and profitability of a project, a company can lose money.

Here, ICF is a tool to measure the cash flow projection of any project and provide an idea of whether a company should invest in it or not.

In this post, I cover every aspect of incremental cash flow, including essential concepts, real-life examples, and its crucial importance. So let’s explore.