Discussion Essay 4

Visit the Web site of Pro Shield Fire Protection, formerly Waterloo Fire Extinguisher. This company was purchased by University of Northern Iowa graduate Russell Hotchkiss while he was still in school as a finance major. During his first year as owner of this business, Russell doubled the company's revenue, employees, services, and trucks. Before deciding to purchase this company, what three basic financial statements would Russell have examined closely? What features of the company's balance sheet would Russell have been interested in? What elements of the income statement would have been very important to Russell? Finally, what is one source that Russell could have consulted to ensure that the company's financial measures were on track with those of the average company within his industry?