How are Financial Statements Useful to Investors?
Not what you're looking for?
Visit the website of your favorite U.S. company. Find the company's financial statements in the section of the website for investors. Post a link to the statements. What did you find interesting about each of the four financial statements, which include balance sheets, income statements, statements of cash flows, and statements of owners' equity? How could the information in those statements be useful to an investor and to a manager?
Purchase this Solution
Solution Summary
Visit the website of your favorite U.S. company. Find the company's financial statements in the section of the website for investors. Post a link to the statements. What did you find interesting about each of the four financial statements, which include balance sheets, income statements, statements of cash flows, and statements of owners' equity? How could the information in those statements be useful to an investor and to a manager?
Solution Preview
Apple's financial statements are always good to use for discussion because they're well organized and thorough. Here is a link to their financial statements: http://investor.apple.com/secfiling.cfm?filingID=1193125-11-282113&CIK=320193
Balance sheet -- Because they are a profitable company and have maintained such profitability, it's always interesting to see the changes in their balance sheet over the past year. In the most recent balance sheet, we can see that Apple made good use of some of their extra cash for their investors, as we see the drastic increase in long term marketable securities increase from 25,391 to 55,618 in a one-year period. This shows really good money management on Apple's part because it shows that extra cash isn't just sitting in the bank not doing anything. Apple is putting their money to work for them, which is increasing the return on investment for investors.
Income statement -- Apple had an increase in revenue that was higher in the past two years than in the past three years. We have a three year listing on their income ...
Purchase this Solution
Free BrainMass Quizzes
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Motivation
This tests some key elements of major motivation theories.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.