Join Rudolph Rosenberg for an in-depth discussion in this video Who finds financial statements useful?, part of Financial Literacy: Reading Financial Reports.
- [Voiceover] So who are financial…statements useful to?…A financial statement gives a complete view…of the financial situation…and performance of the company.…It is used by mainly stakeholders…as the basis for deciding if they should…start, stop or continue…doing a business with a company.…The most common stakeholders that have a need…for financial statements are banks,…capital investment firms, individual investors,…company managers, customers, suppliers…and tax authorities.…
Let's talk about banks.…Let's say for example that you are the owner…of an ice cream shop…and that you decided to purchase a new…ice cream production machine,…which costs around $20,000.…You decide to ask your bank for a loan.…Your banker is going to be concerned…with your solvency.…In other terms before granting you the loan…he will want to confirm that you are…going to stay in business long enough…and that you can generate enough profits…to repay the loan.…All the elements needed to answer those…questions are included in financial statements.…
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- What is a financial statement?
- Reading the balance sheet
- Understanding depreciation, liabilities, and equity
- Reading the income statement
- Understanding revenue, costs, profitability, and net income
- How cash flow works
- Analyzing financial documents with context<br><br>
- The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.
Skill Level Appropriate for all
1. Financial Statements
2. The Balance Sheet
3. The Income Statement
4. The Cash Flow Statement
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