FS analysis Summary.docx - FS consist of 1 Balance...

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FS consist of 1. Balance sheet ( يلاملا زكرملا ةمئاق ) 2. Income statement (Revenue – Expenses) 3. Cash flow statement (cash incoming – Cash outgoing) Revenue could be cash incoming or account receivable ( ضبقلل تاقحتسم )/ Expenses could be cash outgoing or account payable ( عفدلا ةقحتسم ). 4. Owner equity (Capital – withdrawing + net income) Analysis of financial statement involves evaluating 3 characteristics (Liquidity/ solvency/ profitability) using analysis tool (Horizontal/ vertical/ ratio) and compare it as intracompany compression/ intercompany compression/ or industry average comparison. Liquidity: short term ability of the firm to pay its debts when it is due and meet unexpected needs for cash. Solvency: the ability of the company to survive over a long period of time Profitability: Measures the income or operating success of a company for a given period of time. (ability of business to earn a reasonable return on the owners’ investments.
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  • Fall '16
  • Musab Alnaem
  • Balance Sheet, Generally Accepted Accounting Principles, QUALITY DEPARTMENT STORE, intercompany compression

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