A companies financial statement should consist of both a P/L section and a balance sheet. Without seeing both, you cannot get a true picture of what is happening with the money side of the business.
IMO, Hemi's finance statement from KA's recent "Report from the CEO" showed only the P/L side fully but only half of the Balance Sheet as the Asset side was included but not the Liability section. The Balance sheet should have also included year to year comparisons to see what assets / liability changes occurred during that year. As others have already pointed out, the Wyo. asset sale in 2008 made the small $8K profit possible. The Balance sheet surely shrank substantially during 2008 as the Wyo. lease was disposed of and other lease holdings would have been marked down substantially because of falling oil / ng prices.
"Income statement (P/L) describes the current year performance while balance sheet describes the overall position of company right from the starting year of business to current year.
income statement provide the current year net profit information while balance sheet provide information about the overall assets and liabilities of company applied in the business."
What Does Profit and Loss Statement - P&L Mean?
A financial statement that summarizes the revenues, costs and expenses incurred during a specific period of time - usually a fiscal quarter or year. These records provide information that shows the ability of a company to generate profit by increasing revenue and reducing costs. The P&L statement is also known as a "statement of profit and loss", an "income statement" or an "income and expense statement".
What Does Balance Sheet Mean?
A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time. These three balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by the shareholders.
The balance sheet must follow the following formula:
Assets = Liabilities + Shareholders' Equity
Each of the three segments of the balance sheet will have many accounts within it that document the value of each. Accounts such as cash, inventory and property are on the asset side of the balance sheet, while on the liability side there are accounts such as accounts payable or long-term debt. The exact accounts on a balance sheet will differ by company and by industry, as there is no one set template that accurately accommodates for the differences between different types of businesses.
