Phase 7: Statements

Purpose

The Statements phase prepares the three core financial statements from the adjusted trial balance — the income statement, balance sheet, and statement of cash flows.

Usage

/accounting:statements <project>

Prerequisites

The adjusted trial balance must exist at .metapowers/accounting/<project>/06-adjusted-balance.md.

What It Does

1. Reads the adjusted trial balance
2. Separates revenue and expense accounts for the income statement
3. Calculates net income and transfers to retained earnings
4. Organizes asset, liability, and equity accounts for the balance sheet
5. Derives cash flows from operating, investing, and financing activities
6. Writes financial statements to .metapowers/accounting/<project>/07-statements.md

Output

Creates .metapowers/accounting/<project>/07-statements.md containing:

• Income statement (revenue, expenses, net income)
• Balance sheet (assets, liabilities, equity)
• Statement of cash flows (operating, investing, financing)

Next Phase

After statements, proceed to Close to close temporary accounts for the next period.