Words that Count is dedicated to enhancing the professional communication, within and between accounting firms, through efficient drafting of any and all necessary documents.
Thursday, April 22, 2010
Amy Z: READ Money, MAKE Money, GET Money
Before I invest, buy, or even create a partnership with an existing company I will look into the companies income statement, balance sheet, and cash flow statement. I am able to find out weather or not a company is profitable by understanding how to read these three financial statements. It is important to look at all of the sheets or else you won't get a full understanding of the companies financial situation. No one wants to waist their time investing in a company that doesn’t generate revenue! So, don’t be fooled and review the financial statements, it will be worth your time.
The Income Statement:
Shows a company’s profitability over a period of time.(Monthly, Quarterly, Annually)
Financially records everything that is going out and coming in to the company.
The Balance Sheet:
Shows company’s available cash.
Shows the companies’ financial state at a given moment.
Shows money that the company currently has, owes, and what is left for the owner.
The Cash Flow Statement:
Shows where you got your money form and where it is going.
Based on numbers from income statement and balance sheet.
Show what the company did to generate money and how it used the money over a period of time.(Monthly, Quarterly, Annually)
I have included a video that will help you understand how to use, understand, and apply: the income statement, balance sheet, and cash flow statement.
Citations:
"Financial Statements Overview by Park Li ." You Tube. Web. 22 Apr 2010. .
I like how you emphasized how you can use a firm's financial statements to gauge their potential for investing. You did have two spelling errors, but those were the only things I could find wrong with the post. Great job in finding a video to reinforce your text.
I agree with Cody's post. The only other suggestion I have would be to change the dimensions of the video so it fits. That way the right side won't be cut off.
Unlike Jason, I could barely tell the video was cut off. I did notice a lot of misspelled words or wrong words used (like waist instead of 'waste' and weather instead of 'whether'). Try to get a friend to proofread this for you before the due date to get your full grade, because the content is great and the video goes along well!
I like how you emphasized how you can use a firm's financial statements to gauge their potential for investing. You did have two spelling errors, but those were the only things I could find wrong with the post. Great job in finding a video to reinforce your text.
ReplyDeleteNice explanation of the financial statements. It's great advice to read them before investing as long as people can understand them. Good post.
ReplyDeleteI agree with Cody's post. The only other suggestion I have would be to change the dimensions of the video so it fits. That way the right side won't be cut off.
ReplyDeleteUnlike Jason, I could barely tell the video was cut off. I did notice a lot of misspelled words or wrong words used (like waist instead of 'waste' and weather instead of 'whether'). Try to get a friend to proofread this for you before the due date to get your full grade, because the content is great and the video goes along well!
ReplyDeleteYea, I could only tell because I had just done mine lol. I'm sure no one else will notice.
ReplyDeletePretty awesome, i am going to use this to study for my final next week.
ReplyDeleteVery cleaver and catchy title! Great content too!
ReplyDeleteGreat title and very informative.
ReplyDeleteGreat post. Like your title because these three statements do make you money if you know how to read them. Overall, great job.
ReplyDeleteexcellent and thorough job on this post, Amy
ReplyDelete