Question

Please help, will give Brainlest. Explain how a business income statement could help a business owner who is looking for investors to help him grow his business.

Answer 1

Answer:

The income statement determines very important information for a business investment proposal such as EBITDA : Earnings Before Interest and Taxes plus Depreciation and Amortization.

This indicator is critical to know how much profit is drive just by the operation of the business. You can compare this indicator with accounts such as long term and short term loans  in order to determine how much debt is healthy for the business to ask for investors or a bank.

Explanation:

Answer 2

A business income statement is a basic element required by potential lenders, such as banks, investors, and vendors, and it could determine whether you get a loan or not. If the business owner is looking for investors to help him grow his business, he should prepare a business income statement that presents a clear, detailed picture of his business's revenues and expenses. If this information is too difficult to comprehend, investors will be less likely to invest in the business.

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