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post#1

 

Balance sheet

A balance sheet is a financial statement of a company that shows the state of company finance, reports a company’s assets. The balance sheet also provides a lot of information that can be used to analyze the stability and performance of any company. Balance sheets are generally used to take an idea of financial position. It is very important to every stakeholder how they analyze or read the balance sheet of the company (Ekpo, 2017). A balance sheet gives very clear data and gives a mental strength to invest money. The balance sheet helps to make the right decision for stakeholders. With this help, stakeholders save money by go through the balance sheet. The balance sheet enables decision making regarding investment and save money. The balance sheet helps stakeholders to understand the business performance and financial status. Keeping this information updates of balance sheet stakeholder make better management decisions as well. The balance sheet improves efficiency, borrowing habits, and overall financial status of the company (Khalid, 2019).

Cash flow

Cash flow is a statement in which summarizes the amount of cash entering and leaving the company. The statement of cash flow is used to measure the cash position of a company. The cash flow statement also tells how well the company manages its expenses or funds. The statement of cash flow is very important to every stakeholder because it shows how much cash is generated by the company. For a successful business, it must have sufficient cash at all times. Ash flow tells this whether a company has enough cash for expenses. The statement of cash flow also measures the cash inflows and cash outflows during a given period. 

Stakeholders invest in the company to runs for the earning profits. The stakeholder should be focused on the statement of cash flow to make more money. The statement of cash flow helps in managing the long term planning of making money or cash (Guidry, 2020).


Post#2

 

A balance sheet is a financial statement of any organization that reports assets, liabilities, and shareholders' equity at a specific time, and provides a basis for computing rates of return and evaluating its capital structure in finance. It reveals a company's equity net worth. A balance sheet gives information to interested parties about the company's financial position to allow them to take financial decisions. The main business reason is to make profits. A balance sheet provides a way to look inside a business and take an idea of what it is worth. It is an important tool for outsiders such as investors, creditors, and other stakeholders to understand the financial health of any company. The balance sheet also helps to measure the growth of the company. The balance sheet is an essential document that must be submitted to the bank to obtain a business loan or stakeholder to invest in the company to make more profits. The balance sheet helps stakeholders to understand the business performance and position of the company which gives a good idea to make a good investment. The balance sheet can be known by analyzing the financial state of the company (Fleckenstein & Longstaff, 2020)..

The statement of cash flows is very important to stakeholders because it shows how much actual cash a company has for business. A cash flow statement is a financial statement that summarizes the amount of cash that is entering and leaving a company. The cash flow statement measures the management of the company about cash, meaning how well the company cash generates to pay obligations and fund operating expenses. The cash flow statement is important because it informs the stakeholder about the cash position of the business. For a successful business, it must have sufficient cash at all times. It needs cash to pay its expenses, to pay bank loans, to pay taxes, and to purchase new assets for the company and employees. Having a positive cash flow means that profit (more money is coming into the business than going out). Businesses tend to grow then have more cash to buy stock, hire employees, etc. The cash flow statement is also very important to any company as well as for any stakeholder who provides a great idea of investment (Mulier, Schoors, & Merlevede, 2016).

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