• SNAPSHOT VIEW OF…• ASSETS

• Things you “OWN” (have value)• Received (e.g. cash, investments, equipment,

facilities)• Earned but not received (e.g. accounts

receivable, promises to give, prepaid rent)

• LIABILITIES• Things you “OWE”• Unpaid bills, loans, future retirement

obligations, bonds issued

• NET ASSETS• Assets – Liabilities = Net Assets (equity, net

worth)

• FLOW OF $ OVER TIME (monthly, annually, etc.)

• REVENUES

• $ earned, income

• Apportionments, grants, in-lieu of taxes, donations

• EXPENDITURES

• SURPLUS/DEFICIT

• Revenues – Expenditures

• Change in Net Assets (net revenue, net profit)

• “CASH IS KING”

• Starts with Change in Net Assets from Statement of Activities

• Adjusts for non-cash transactions (things that increase or reduce Change in Net Assets but are not actual cash)

• Leaves true picture of cash position