STATEMENT OF STOCKHOLDERS’ EQUITY
The income statement is a financial statement that shows the revenues that a company earns and the expenses that a company incurs in a particular period of time. It is also called a profit and loss statement. The income statement starts with the revenues and deducts the expenses for the firm to arrive at the net profits. It is prepared after a specific time.
STATEMENT OF STOCKHOLDERS’ EQUITY
The statement of Stockholders’ equity is a part of the financial statement that shows the changes in the equity section of the balance sheet. It shows the activities that increased or decreased the equity of the company for a particular accounting period. It reports the shares, dividends, and the retained earnings of the company at a specific period.
BALANCE SHEET
The balance sheet is part of the financial statements that report the financial position of the company at a given specific financial period. It reports the balances of the assets, liabilities, and the equity of the company after the end of a particular period in time. It shows the assets that are useful in the generation of income and the form of financing that was used in the acquisition of the said assets at a particular time. The balance sheet is guided by the accounting equation that Assets = Liabilities + Capital.
INFORMATION IN EACH STATEMENT
The Income Statement reports the revenues and the expenses incurred to generate the prior. The users are able to see what profits the company is able to reports after their investment in the company. The profits, in other words, are the returns the users are interested in to see if the company is profitable or not.
The Statement of Stockholders’ Equity is useful to show the level of equity that the company has in its capital structure. The statement is useful in assisting the company to know and make a decision in the issuance of future stock.
The Balance Sheet is useful in reporting the economic resources that the company owns, which are useful in the generation of revenue. The use of the balance is showing how those economic resources, in this case, the assets have been financed. The balance sheet gives a snapshot to the investor on the importance of investing in a particular stock.
NIKE FINANCIAL STATEMENTS
Nike reported in 2019 an Income Statement total revenues of $ 39,117 million, cost of sales of $21,643 million, and hence the gross profits of $ 17,474million. The total expense reported was $ 12,702 million, and thus the net income was $ 4,209 million. The Statement of Stockholders equity showed the company had share worth $ 7,163million while the retained earnings was $ 1,643million with a total balance of $9,040 million. In the balance sheet, the company had total assets worth $23,717 million, which were financed by liabilities of $ 14,677 million and equity of $ 9,040 million. This is as per the reported financial statement for the year ended May 31, 2019.