ACC 220 Week 3 DQ 2 - When a business person understand how...

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ACC 220 Week 3 DQ 2 Financial reports enable business managers to see the current numbers compared to previous  years. It will allow them to see the growth or loss. We'll let them know if the company is on the  market "and what is the percentage of consumer spending in this market has increased over  this company. It also helps forecasting – palmist responsibility – the WB focuses on the years  before and considers that the increase or decrease is possible near and inventory control more  efficient. For example – a BM at Home Depot – you can find financial reports to see what is the  best time for snow to hit stores in New England rather than for the same position to strike shops  in the Midwest. But also enables said snow blowers to see if you can take a price increase of  product in a given year and what time of year would be better received by consumers.
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Unformatted text preview: When a business person understand how to read a financial report the information on that report can be used to make business decisions about many aspects of the business. For example, if a business' operating profit is seen to decline for a time then the managers would need to make changes to decrease costs and to obtain lower cost materials. If managers see that accounts receivable are not being collected then that may be an indication that they need to be stronger in their collection efforts or more careful in whom they allow to purchase on credit. Also, if they realize that even when sales are rising their cash flow is not rising, then that can tell them to alter their collection and payment patterns....
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