Revenue minus expense bar graph1/27/2024 ![]() You can see below that our data begins with a starting balance, includes incoming and outgoing funds, and wraps up with an ending balance. Which reporting period is right for you depends on your goals. Monthly, quarterly, and annual reporting periods are all common. If you have data that would fit perfectly into a waterfall chart for a useful visual, let’s get right to it! For this tutorial, we’ll use a checking account as an example. Your reporting period is the specific timeframe the income statement covers. RELATED: How to Automatically Generate Charts in Google Sheets Create a Waterfall Chart in Excel Its useful for understanding how an initial value (for example, net income) is affected by a series of positive and negative values. The basic equation underlying the income statement, ignoring gains and losses, is Revenue minus Expenses equals Net income. Revenue: Use a starting amount, add income, subtract expenses, and show the total remaining. The income statement communicates how much revenue the company generated during a period and what costs it incurred in connection with generating that revenue.Products: Display a starting total, subtract damaged units, add refurbished units, and show the sellable total.Inventory: Enter a starting amount, add received shipments, subtract units sold, and show the ending amount. ![]() Checking accounts: Use a starting balance, add credits, subtract debits, and show the ending balance.If you have a starting value with a positive and negative series that affects the final outcome, then a waterfall chart is for you. The latter is particularly useful when you have more regions or other categories of data on the axis. With straight bars, the bullet chart is more precise in presenting data, and more compact. You might be wondering whether the data that you have in your spreadsheet is appropriate for a waterfall chart. The key difference is afore-mentioned straight bar vs.
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