However, no cost is fixed over the long-term . An Income Statement shows sales, expenses, and profits or losses for a certain period of time. The income statement and balance sheet are the two most important financial statements. Inventory is the value of goods that you've made or purchased for resale. Operating Expenses are expenses which are paid from the gross profits of the company.
Principal is the original amount of a loan.
The rate of interest is based on the original amount of the loan. Ratio Analysis is the use of a variety of ratios in analyzing the financial performance and condition of a company. Total Assets are the total amount of assets we have as of a certain date. Total assets equal current assets plus fixed assets. Fixed assets are long-term assets like buildings and machinery.