On a typical income statement, a company's net profits or losses for a given period are calculated by subtracting its expenses from its revenues.
As a result, the income statement will be affected directly by any transactions that have an effect on the company's overall revenues or expenses.
What effect do financial statements have?
A company's stock price can be significantly affected by its financial statements. When making investment decisions, a lot of investors look at the financial statements. The stock price can rise or fall depending on whether information presented in a financial statement is better or worse than anticipated.
Cash will be calculated by multiplying the number of shares by the issue price when shares are issued above par.
Substitute $ 10 for the issue price and 100,000 shares for the number of shares needed to obtain cash.
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