Accounts What can you learn about a company by analyzing its balance sheet, income statement, statement of cash flow and common size financial...

You can
learn quite a bit by studying a companys balance sheet and other financial data.  In fact,
assuming these financial records are accurate and there has been no attempt to defraud investors
or the government, a detailed balance sheet provides pretty much everything one would need to
know to grasp the companys financial health.  Balance sheets, by definition, represent,
sometimes in minute detail, both the assets and liabilities or debts a particular business holds
or is carrying.  By examining the data on these forms, one can ascertain the degree of imbalance
that may exist with respect to the amount of debt a company is carrying on its books relative to
the value of its assets.  The goal, obviously, is to have these sheets either in balance €“ in
effect, the company is breaking even between assets and debts €“ or, preferably, to have a
balance sheet that reflects assets that exceed in value the amount of debt or obligation
represented on the financial statements. ...

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