Amounts shown in the income statement are the amounts recorded for the given period - a year, a quarter or a month. The next period’s income statement will start over with all amounts reset to zero. While the balance sheet shows accumulated balances since inception, the income statement only.
This template was designed to calculate Financial KPIs based on Balance Sheet Statement and Income Statement information. It can be used to improve your strategy execution, aligning business activities and individual actions with strategic objectives. It also provides a means for you to monitor core activities of the business rather than simply outcome measures of financial success.
Key performance indicators (KPIs) are a set of quantifiable measures that a company uses to gauge its performance over time. These metrics are used to determine a company’s progress in achieving its strategic and operational goals, and also to compare a company’s finances and performance against other businesses within its industry. Key performance indicators tied to the financials, such as included in this template, are usually focused on revenue and profit margins.
Learn more about the functions provided by this template:
Balance Sheet Statement + Income Statement:
In this screen you enter the previously calculated data for assets and liabilities. You can also enter the data previously calculated for your Income Statement. White cells are reserved for input and green cells have formulas for displaying the subtotals of the calculated values.
Financial Key Performance Indicators (KPIs):
In this screen you can see the financial indicators already calculated using the formulas developed for this worksheet. This screen presents the financial indicators based on the values that you typed in the previous screens of Income Statement and Balance Sheet.
This module contains the following KPIs:
Cash Flow
Total Ratio
Current Ratio
Working Capital Ratio
Cash on hand Ratio
Total Ratio
Current Ratio
Working Capital Ratio
Cash on hand Ratio
Average Collection Period
Average Payment Period
Days in Inventory
Operating Cycle
Cash Conversion Cycle
Asset Turnover
Fixed Assets Turnover
Inventory Turnover
Average Payment Period
Days in Inventory
Operating Cycle
Cash Conversion Cycle
Asset Turnover
Fixed Assets Turnover
Inventory Turnover
Debt Ratio (%)
Debt to Equity Ratio (%)
Debt to Equity Ratio (%)
Gross Margin Ratio
Operating Margin
Pretax Profit Margin
Return on Total Assets (ROTA)
Fixed Asset Turnover Ratio
Operating Margin
Pretax Profit Margin
Return on Total Assets (ROTA)
Fixed Asset Turnover Ratio
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Receive this file immediately on your e-mail
Template ready to use and 100% customizable
Single payment without any extra charges
Designed for Excel 2010 or later
100% Safe buying with Gumroad (via Credit Card or Paypal)
Total warranty and after sales support
Receive this template immediately on your e-mail
Template ready to use and 100% customizable
Single payment without any extra charges
Designed for Excel 2010 or later
100% Safe buying with Gumroad (via Credit Card or Paypal)
Receive this template immediately on your e-mail
Template ready to use and 100% customizable
Single payment without any extra charges
Designed for Excel 2010 or later
100% Safe buying with Gumroad (via Credit Card or Paypal)
Balance Sheet + Income Statement + Financial KPIs Template
US$15,00
Related Articles
- 1 Prepare a Divisional Income Statement
- 2 What Are the Two Categories of Profit and Loss Accounts?
- 3 Present an Income Statement on the Gains on the Sales of Assets
- 4 What Is a Reportable Segment?
Companies sell divisions and subsidiaries for numerous reasons. A company may shift strategy and no longer need the division to accomplish its objectives. Alternatively, a company may need to generate cash for its primary business operations. Whenever a company sells any asset, whether it is a subsidiary or machinery, for more than its book value, it must recognize a gain on the sale. Gains on sales of business segments appear below operating income on the income statement.
Gain on Sale
'Gain on sale' refers to the profit your company makes when it sells a long-term asset for more than its book value. Long-term assets are assets that your company has owned for 12 or more months and includes investments, divisions and business segments. The book value of an asset is its original cost less the accumulated depreciation shown on the balance sheet. For business divisions, the owners equity or net worth shown on the business segment's separate balance sheet is that segment's book value. Gain on sale is determined by subtracting the segment's book value and transaction fees from its sales price.
Income Statement - Gain
On your company's income statement, you record the gain on the sale of a business segment as extraordinary income. Extraordinary income is any income generated from sales of subsidiaries, assets or other irregular activities. The income statement generally reflects the revenues generated and expenses incurred in operating your business and engaging in its typical business dealings or ordinary activities. Therefore, ordinary income is any revenues and expenses that arise from the company's usual business activities. Extraordinary income items appear below operating, or ordinary, income and above income taxes on the income statement.
![Sae Template For Income Statement And Balance Sheet Sae Template For Income Statement And Balance Sheet](http://box5146.temp.domains/~bondstr4/wp-content/uploads/2016/09/Picture1.png)
Example
Say your marketing firm has a wholly owned public relations division. Another firm makes an offer to buy it for $500,000, which you accept. The public relations division’s balance sheet shows assets of $300,000, liabilities of $150,000 and net worth of $150,000. The transaction costs your firm $20,000 to finalize. The gain on the sale recorded on the income statement as extraordinary income is $330,000. This is calculated by using the sale price of $500,000 less the book value of $150,000 and transaction costs of $20,000.
Carve-Out
If your company does not currently operate the business segment as a separate entity, then it will need to do a carve-out. This occurs when you analyze the segment and determine what assets and liabilities directly relate to the segment. You then carve these numbers out of the main balance sheet and create a separate balance sheet for the business segment. The two new balance sheets summed together equal the original.
References (2)
About the Author
Tiffany C. Wright has been writing since 2007. She is a business owner, interim CEO and author of 'Solving the Capital Equation: Financing Solutions for Small Businesses.' Wright has helped companies obtain more than $31 million in financing. She holds a master's degree in finance and entrepreneurial management from the Wharton School of the University of Pennsylvania.
Photo Credits
- Brand X Pictures/Brand X Pictures/Getty Images
Choose Citation Style
C., Tiffany. 'How to Report the Gain From the Sale of a Business Segment on the Income Statement.' Small Business - Chron.com, http://smallbusiness.chron.com/report-gain-sale-business-segment-income-statement-65330.html. Accessed 17 June 2019.
C., Tiffany. (n.d.). How to Report the Gain From the Sale of a Business Segment on the Income Statement. Small Business - Chron.com. Retrieved from http://smallbusiness.chron.com/report-gain-sale-business-segment-income-statement-65330.html
![Company balance sheet and income statement Company balance sheet and income statement](http://www.streetofwalls.com/wp-content/uploads/2012/12/example-income-statement1.png)
C., Tiffany. 'How to Report the Gain From the Sale of a Business Segment on the Income Statement' accessed June 17, 2019. http://smallbusiness.chron.com/report-gain-sale-business-segment-income-statement-65330.html
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