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Bas_tet [7]
2 years ago
6

What types of questions can be answered by analzying financial statements?

Business
2 answers:
NARA [144]2 years ago
6 0
- Would an investment generate attractive returns?
- What is the degree of risk inherent in the investment?
- Should existing investment holdings be liquidated?
- Will cash flows be sufficient to service interest and principal payments to support the firm's borrowing needs?
- Does the company provide a good opportunity for employment, future advancement, and employee benefits?
 - How well does this company compete in its operating environment?
- <span>Is this firm a good prospect as a customer?</span>
sattari [20]2 years ago
6 0
If indeed the books are straight forward, you may learn the general health of the business itself by analyzing the growth patterns.  Of course the in the "black" and in the "red" is a clear indication of the finanacial health.  Areas of concern can be discovered by preparation of a 'bottom line' or to learn exactly how much cash is flowing, not how much is only on paper.  Breaking down the books involves a detailed analysis of each category to eventullay learn the net worth of a venture.  After examining the books, compare them to the actual tax returns for at least 5 years prior.  Examine the companies internal auditor's reports but do so with a jaundiced eye since the person preparing those books may have been influenced a tiny bit when they recieved their pay check.  An auditor's background and reputation should be taken into consideration.  Ask to see more than the actual company books, ask for the original documents that were generated during large transactions and don't be put off by a non-disclosure agreement.  
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Munchkin is a popular baby clothing brand. The founder of the company, Isabel, conducts a brainstorming session with her employe
Elena L [17]

Answer:

B) upward communication

Explanation:

Upward Communication -

It refers to the flow of information from the lower level to the higher level in the company, is referred to as upward communication.

The method helps to pull out thought and innovative technique from all the employees working in the company , and is used for the betterment of the company.

It helps to have a healthy conversation and decision making process, which helps the company to grow.

Hence, from the question,

The company Munchkin takes idea from all the employees and tries to implement it into the company, thereby showcasing the method of upward communication.

3 0
3 years ago
The Department of Labor’s Occupational Outlook Handbook is relatively expensive and not available for use by the general public.
denis23 [38]

Answer: false

Explanation: just got it right

4 0
2 years ago
Under what circumstancess should outsourcing be used for building Information systems​
Zinaida [17]

Answer:

FOR LIFE INSURANCE DENSITY

6 0
2 years ago
In addition to the three basic financial statements, which of the following is also a required financial statement? O Statement
Vikki [24]

Answer:

Statement of Cash Flows.

Explanation:

The financial statement comprises of income statement, balance sheet, statement of stockholder equity and the statement of cash flows. It is explained below

In the income statement, the total revenues and the total expenses are recorded.  

If the total revenues are more than the total expenditure then the company earns net income

And, If the total revenues are less than the total expenditure then the company have a net loss

This net income or net loss would reflect in the statement of the retained earning account.

In the balance sheet, the assets, liabilities, and stockholder equity is recorded. In this the accounting equation is used which is shown below:  

Total assets = Total liabilities + stockholder equity  

The debit and credit side of the balance sheet should always be equal and balanced.  

Moreover, it always is prepared on the specified date.

The statement of stockholder's equity comprises common stock and retained earnings.  

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

And, the ending balance of the common stock = Beginning balance of common stock + issued shares

There are three types of activities in the cash flow statement which are described below:  

1. Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.  

These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income and the loss on sale of assets is added whereas the gain on sale of assets is deducted  

2. Investing activities: It records those activities which include purchase and sale of the long term assets. The purchase is an outflow of cash whereas sale is an inflow of cash

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance. The issue of shares is an inflow of cash whereas redemption and dividend is an outflow of cash.

6 0
3 years ago
Enos Printing Corp. uses a job order cost system. The following data summarize the operations related to the first quarter’s pro
VLD [36.1K]

Answer:

raw materials    197900

accounts payable   197900

WIP   161830

factory overhead   5270

raw materials   167100

WIP   85500

factory overhead   7600

wages payables   93100

factory overhead   53000

accounts payable   53000

factory overhead   17150

acc. Dep-equipment   17150

dep expense*   14800

acc. Dep- Off Building   14800

WIP**   70965

factory overhead   70965

Finished Goods***   251747

WIP inventory   251747

Explanation:

* as the building is not related to the manufacturing process we cannot capitalized through inventory We will record as cost ofo the period therefore, depreciation expense

** the aplied overhead will be the amount of direct labor added during the period time 83%

85,500 x 83% = 85,500 * 0.83 = 70,965

*** we will have to add up the jobs cost to detemrinate how much of the work in process inventory becomes finished good

Job  Materials // Labor // Overhead

A20 $  37,740  $  19,200 + 19,200 x 0.83

A21  $ 44,320  $ 23,600 + 23,600 x 0.83

A23 $  41,770   $  27,100  + 27,100 x 0.83

Total 251,747

4 0
3 years ago
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