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Financial statement disclosure, inventory method to maximize

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List the financial statements a business most disclose and define each.

Discuss how inventory should be used by the manager to maximize profit.

Select two ratios and discuss how to interpret and utilize the ratios.

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List the financial statements a business most disclose and define each

Businesses must report an Income Statement, a Balance Sheet, a Statement of Cash Flows and a Statement of Changes in Equity. These are called the four major financial statements. The income statement reports sales and costs associated with accomplishing those sales. The net of sales and costs is income or profit. The balance sheet is a snapshot on the last day of the period which shows the assets, liabilities and equity of the firm. The statement of cash flows shows the inflows and outflows of cash sorted by operating, investing and financing activities. The statement of ...

Solution Summary

Your tutorial is 346 words and a reference on maximizing profit through inventory management. The discussion explains in simple everyday language suitable for a novice.