There are three types of financial statements for businesses: income statement, balance sheet and cash flow statement. Each of these financial statements shows a different aspect of the business ...

How to read an income statement . Below is the 2021 quarterly income statement from Ford's Form 10-Q. One of the first things that you will notice is that the report is using horizontal analysis.

An income statement shows income and expenses over a period of time, while a balance sheet shows assets and liabilities on a specific date, such as the beginning of a year.

The income statement is hit with a $1,500 depreciation expense each year. That expense is offset on the balance sheet by the increase in accumulated depreciation, which reduces the equipment's net ...