Also referred to as a profit and loss statement. By combining these elements, the income statement illustrates just how much income your company makes or loses during the year by subtracting cost ...

Understanding cash flow statements is important because they measure whether a company generates enough cash to meet its operating expenses.

Common examples include ... The formula is simple: Revenue - Expenses = Profit (or Loss) For your business plan, generate monthly income statements for the first year. Established businesses ...