Financial statement analysis Assignment 5

Financial statement analysis Assignment 5

This assignment will familiarize you with the importance of a Company’s financial

statements as a business owner to upgrade your knowledge on financial analysis and

reporting.

Read the two articles: “What are your financial statements telling you?” [Forbes, Dec 22,

2013]

statements/#2a75846622b0

and “Why Reading Your Financial Statements Is A Lot Like Eating Kale “.[Forbes,

March 30, 2017]

statements-is-a-lot-like-eating-kale/#149b2312652a

Instructions: Write Two- pages summary 12-point font (Times New Roman)

including all the references used in the assignment. Submit your assignment in

Moodle –Assignment 5 Drop box. Note: Use your own words (Do not copy and

paste).You can use other academic references to support your summary.

“Plagiarism; presenting as your own original work something that is not. Your

assignment must be referenced. If you borrow any words, ideas or information, you must

properly document the borrowed materials and list all sources used”.

Consider answering the following questions:

1. What is the main point of the articles?
2. What are the financial statements discussed in both articles?
3. Where can you find cash flow from operations?
4. What is a negative cash flow from operation? What does it suggest?
5. What does the author mean by the words “financial checkup” and

“benchmarking” in “What are your financial statements telling you?” article?

1. What are the key metrics on the financial statements and vital information that

help running the business better and make money?

1. What are the ratios discussed in both articles that help measure efficiency?
2. Why gross margin and operating margin are important to business owners?
3. What does the author mean by the words “Mix and Match” and “track the trends”

in “Why Reading Your Financial Statements Is A Lot Like Eating Kale “article?

https://www.forbes.com/sites/sageworks/2013/12/22/understanding-financial-statements/#2a75846622b0
https://www.forbes.com/sites/sageworks/2013/12/22/understanding-financial-statements/#2a75846622b0
https://www.forbes.com/sites/allbusiness/2017/03/30/why-reading-your-financial-statements-is-a-lot-like-eating-kale/#149b2312652a
https://www.forbes.com/sites/allbusiness/2017/03/30/why-reading-your-financial-statements-is-a-lot-like-eating-kale/#149b2312652a