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Assume you are given 3 consecutive years of Audited Balance Sheet and Income Statements for a company - and nothing else Which STATEMENT or STATEMENT(S)
Assume you are given 3 consecutive years of Audited Balance Sheet and Income Statements for a company - and nothing else | ||||
Which STATEMENT or STATEMENT(S) that needed to? | ||||
BALANCE SHEET | INCOME STATEMENT | Cannot determine or evaluate without more information | ||
Determine the company's liquidity | ||||
Reasonably assess the company's ability to repay existing debt | ||||
Evaluate the company's solvency | ||||
Calculate Return on Assets | ||||
Calculate Return on Equity | ||||
Calculate the current ratio | ||||
Determine the sum of Net Income and Distributions | ||||
Determine the company's capital structure | ||||
Calculate the company's quick ratio | ||||
Determine if Accounts Receivable contributed positive or negative cashflow year over year | ||||
Confirm that the company has interest expense and the amount | ||||
Calculate the sales growth over the most recent two years | ||||
Calculate the Return on Equity | ||||
Determine whether the company has improving profitability | ||||
Determine if profitability is generated from Operations or non-recurring events | ||||
Determine whether the company uses Straight-line depreciation for book purposes | ||||
Determine the amount of distributions paid to shareholders | ||||
Evaluate if the company is adequately capitalized | ||||
Evaluate how well the company can manage costs and expenses. | ||||
Confirm the amount of cashflow provided by financing | ||||
Calculate EBITDA |
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