CheckPoint A new company - locations or if the business is...

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The financial reports that I would expect to see in my department would be the Profit and Loss statement (P&L), Balance sheet, Statements of Retained Earnings, and Cash Flow statements. I would use the P&L to help me estimate monthly and yearly sales based on company predictions of what would be used for cost of goods, expenses, and sales. This would help me to set goals for the business to operate efficiently for that period of time. Using last year’s P&L against this year’s P&L can help you see where you are down at in regards to your bottom line and you can make adjustments as needed to catch up to and even surpass last year’s sales target by increasing or decreasing certain things. The Balance sheet would be used to help me identify trends in accounts payable and accounts receivable. I would help me determine if the business needs to close some
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Unformatted text preview: locations or if the business is growing and needs to expand its locations. With the balance sheet, it gives me an insight into the financial condition of the company at a specific period or point in time. The cash flow statement would be used to tell me where money is coming from and where it is going to. The statement of retained earnings helps me to understand what money is left over after all dividends are paid out to the investors. As the person overseeing the accounting department, I would use the reports to analyze where the company stands financially and where the company is headed in the future. I would be able to see from these reports what areas we would need to budget differently to be able to increase sales in that area or to completely cut out that particular area because of income loss....
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