Costs and expenses associated with earning the revenue are also disclosed. Operating income is the company's revenue minus all expenses required to obtain the revenue. Costs relating to debt financing and tax expenses are deducted, and the remainder is the net income. Assets can either be physical such as buildings, trucks, inventories of products and cash or they can be intangible which includes goodwill, trademarks and patents. Current assets are things the company expects to convert to cash within one year, and noncurrent assets which include property and equipment, are not intended to be converted to cash or will take longer than a year to convert.
Liabilities are the debts of the company.
These include money owed to banks or suppliers of good and services, taxes owed to government authorities or rent owed. Stockholder's equity is the amount invested in new stock plus earnings the company has retained since it started business. The amount of stockholders' equity always equals the value of all the assets minus all the liabilities. Condensed Combined Statements of Cash Flow reports the flow of cash into and out of the company in a given year. It also includes the combined total change in cash and cash equivalents from all sources and uses of cash.