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I sure appreciated the responses to these questions, but I don't think either of you provided a detailed answer to the poster's first question. Could you please elaborate?

Example: I want to use quarterly information. The 3rd quarter Income Statement provides me with revenues for 3 months ending September 30th. The Balance Sheet provides me with short term debt "through" September 30th. I don't have to back out these Balance Sheet and Cash Flow Statement numbers from the previous quarter, do I?



Lynn,

You would not have to "back out" the numbers on the Balance Sheet for use in a mid-year analysis. Think of the Balance Sheet data in the same way as the balance line in your personal checkbook. If someone asked you how much money you had in your account yesterday, you wouldn't subtract the current amount from what you had at a previous date ... it would just be whatever the balance was as of yesterday.

As for the Cash Flow Statement, that is a different animal altogether. Most companies present their Cash Flow data in cumulative form for the current financial year. You can usually tell this by looking at the column headers -- they will generally say something like "9 Months Ended" or something like that. To get the values for Net Cash From Operations and Captial Expenditures for a mid-year quarter, you will need to subtract out the values from the previous quarter. If you are in the 1st quarter, then you won't need to do that since the data on the Cash Flow Statement will just be for that quarter.

Hope this helps explain things in a bit more detail.

the LanceMan
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