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Financial Performance by Marc Bertoneche, Rory Knight

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2

Review of financial statements 2: The income statement and the statement of cash flows

2.1 Introduction to flow statements

This chapter introduces the income statement and cash flow statement. These statements are flow statements which measure the flow of transactions over a period of time as distinct from the balance sheet which reports stocks at a particular moment.

2.2 The income statement

The consolidated statements of income for DaimlerChrysler is reproduced in Exhibit 2.1. This reports an even more daunting array of numbers than the balance sheet, here we see seven separate statements of income reported.

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Exhibit 2.1 DaimlerChrysler income statement ...

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