Assignment: Response to Discussion

Discussion Response

Student 1

As an investor what I would look for on a company’s balance sheet would be the amount of assets and liabilities that the company has in order to know what financial position the company is in before investing. Depending on the nature and operation of the company, looking at detailed items listed on the assets would tell me the type of resources it uses for its operation. I would carefully look at liabilities and how much is owed to creditors or other obligations that is needed to be paid out. As an investor I want to focus on investments that would give me the highest return on investmeunt.

Student 2

I would place myself as an investor. The balance sheet would I would use in this role to evaluate the liabilities within the company & the assets the company owned. This sheet will help me to evaluate the health of the company, whether they are profiting enough for me to feel comfortable with where the company could go. While also revealing what kind of debts or expenses the company is currently owing. The balance sheet will reveal the customers that are currently outstanding in debt to the company as well. And can reveal what kind of materials or equipment the company has on hand of any value to the company. As an investors it is critical that they see the risk and benefits in a companies current state.