team project

1. Jeanette Flores
Team 3

2.  Financial statements will identify financial
strengths and weaknesses.
 Financial statements are prepared to meet
external reporting obligations.
 Three Are Listed:
 The Balance Sheet
 The Income Statement
 The Cash Flow Statement

3.  The position of your business is judged by it.
A balance statement is
showing a trading period stating all the
assets (owns) and liabilities (debts) that the
company owe.
 Fixed Assets: Are assets that are permanent
use in the company.

4.  Fixed Liabilities: These are the liabilities
which are payable immediately or in the near
future. These liabilities are payable after a
long period.
 Current Liabilities: These are the
liabilities payable immediately or in the near
future.

5.  Stockholder’s Equity: In the real sense,
ordinary shareholders are the real owners of
the company.
 Formula of return on equity capital ratio is:
Return on Equity Capital =[(Net profit after
tax-Preference dividend)/Equity share
capital] x 100

6.  Keep tabs on the money fueling your
business. Cash flow is a measure of the
amount of money your company makes and
spends during a given period.
 Understanding your cash flow lets you
evaluate:

7.  Borrowing needs
 The timing of new hires and major purchases
 The timing of payables
 Product pricing and the amount of credit
granted to suppliers
 The need to make strategic cost-reduction
decisions