How the company actually performs

Reference no: EM13297231

Assume you are deciding whether or not to invest in a particular company. Discuss which elements of which financial statements you would want to carefully examine. Explain your rationale. If I were deciding to invest in a company, I would definitely examine the Statement of Cash Flows. I would want to look at this statement so that I could get an idea of not only the company's cash position, but also how the company uses its cash. This statement could also give me an indication of whether or not the company generates enough cash to pay debts or if the company has extra cash flow that can be used for growth. I would also look carefully at the company's Income Statement. Looking at a few of these statements would let me know exactly how the company performs in each month, quarter, and/or year. This statement also takes into account figures such as depreciation, taxes, and stock prices. The Income statement coupled with the Statement of Cash Flows would give me a more complete picture of how the company actually performs. Provide a discussion.

Reference no: EM13297231

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