There is a good probability that Stanford will keep on growing and bringing

There is a good probability that stanford will keep

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consolidated cash flow statement. There is a good probability that Stanford will keep on growing and bringing revenue, which is beneficial for all. Four Common Financial Statements/ Methods of Analysis The four common financial statements are Income Statement, Balance Sheet, The Cash Flow Statement, and Statement of Shareholders’ Equity. The Income Statement is a financial statement that shows a company’s expenses, revenue, and net income or loss over time. The Balance Sheet is the elements of the accounting equation which is assets equals liabilities plus shareholders’ equity. The Cash Flow Statement is a statement the show the amount of cash within the company. Statement of shareholders’ Equity show changes in the shareholders’ equity account. These financial statements are very important to the company and reveals if the company is financially healthy. The statements also reveal if the company is generating enough revenue to pay their debts, employees, and investors. Financial statements can help predict if the company will be operating within the next 5 years. Most company’s use these statements to
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Stanford Health Care 4 address financial issues and cash flow before they have an impact on the company. These statements allow the business owner to make sound decisions and changes within a timely fashion that will determine if the business is generating revenue or losing revenue. The financial statements also keep track of all money coming in and going out of the company. The Methods of Analysis are Horizontal, Vertical, and Ratio. Horizontal analysis evaluates financial statement data from one quarter to another. Vertical analysis evaluates financial statement data that expresses each line item in a financial statement as a percentage or a base amount. Ration Analysis makes comparisons of line items in the financial statement.
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