University:
Saint Louis University
Course:
OPM 2070 | Introduction to Business Statistics
Academic year:

2024
Views:

377

Pages:

9
Author:

Rosally L.

BASIC FINANCIAL STATEMENTS Used by a variety of users with an economic interest Prepared for decision making usefulness and performance evaluation (external users) (internal users) 1. Direct Interest Users * Investors * Suppliers (for credit worthiness) * Creditors (Financing Companies) 2. Internal Users * Board of Directors * Employees * Executive Management 3. Indirect Interest Users * Government / Regulatory Agencies * Stock Market * Financial Analyst 4. External Users * use financial statements * to decide whether to invest * or not BASIC FINANCIAL STATEMENTS (order of priority) 1. Income Statement * reports revenues, expenses, gains and losses * reports other factors that affects the organization’s profitability * can be combined w/ comprehensive income. 2. Statement of Financial Position (Balance Sheet) * reports about assets, liabilities and equity * [A = L + C] 3. Statement of Changes in Equity * Show the changes to stockholders equity Beginning + Rad - Subtract = End 4. Statement of Cash Flows * provides information about the sources and uses of cash over a period of time. * a. Operating Activities * b. Investing Activities * c. Financing Activities Operating Activities Firm's day to day activities as reported in the income statement Net Income

Financial Statement Analysis

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