Hello Shareya,

First, you need to decide which time period serves as the basis for the transformation. Do you want to put each of the statements on a quarterly basis, or on an annual basis, or some other time period. My preference is for quarterly statements. For the income statement, in the fourth quarter, it is reported on an annual basis and not a quarterly basis. So you have to take the annual income statement and subtract the sum totals for the first three quarters: Annual income statement - (Q1 + Q2 + Q3 income statements) = Q4 income statement. The balance sheet is always reported as a snapshot of the quarter end so no transformation needs to be done. Cash flow statements are reported on a cumulative basis always. For example, the second quarter cash flow statement actually shows cash flow totals for the first six months. To create a Q2 cash flow statement = first six months cash flow statement - Q1 cash flow statement. To create a Q3 cash flow statement = first nine months cash flow - (Q1 + Q2 cash flow statements). To create a Q4 cash flow statement = twelve months cash flow statement - (Q1 + Q2 + Q3 cash flow statements).

Hope that helps!

Jason