In this unit, you are
learning how to examine financial statements using several methods of analysis and how to use ratios. As a business owner you must monitor cash flow in order to make sure bills are being paid on time and cash is being received from customers. Monitoring cash flow can help you determine if you have enough resources to expand, purchase new equipment, or even invest in other securities or companies. In addition to the Cash Flow Statement, business owners can use the horizontal, vertical, and ratio analysis to evaluate a company’s performance. These tools are beneficial in monitoring revenue and expenses as well as measuring performance against competitors.
Imagine you own a business and you need to prepare a cash flow statement, and both a horizontal and vertical analysis. Please discuss the following information in your initial post:
Now imagine you are applying for a small business loan. You have all the financial statements prepared and the bank requests you to calculate three different ratios: working capital, acid test ratio, and current ratio.
Please provide an appropriate subject bar that captures our interest and gives us an idea as to what your post is about.
Be sure to cite any sources that you use with APA. Wikipedia is not an acceptable source.