Understanding Financial Statements

The Statement of Owner's Equity

Note that we used the net income figure from your income statement to update the owner's equity section of your end-of-month balance sheet. Often, companies prepare an additional financial statement, called the statement of owner's equity, which details changes in owner's equity for the reporting period. Figure 12.11 "Sample Statement of Owner's Equity for Stress-Buster Company" shows what this statement looks like.

Figure 12.11 Sample Statement of Owner's Equity for Stress-Buster Company

Sample Statement of Owner's Equity for Stress-Buster Company

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  • line 7225 of /lib/moodlelib.php: call to debugging()
  • line 7292 of /lib/moodlelib.php: call to {closure}()
  • line 71 of /lib/classes/hook/output/before_footer_html_generation.php: call to get_plugins_with_function()
  • line 987 of /lib/classes/output/core_renderer.php: call to core\hook\output\before_footer_html_generation->process_legacy_callbacks()
  • line 97 of /mod/book/tool/print/index.php: call to core\output\core_renderer->footer()