ANALYZING FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

Stuff you don’t want to deal with

MOST IMPORTANT POINT

• You know more than you think you do!

YOU MUST ACCOMPLISH

• Putting it under your nails• In your nose, so it tickles• Put your fear behind you• Therefore – ask????????’s

The Financial StatementsThe financial statements mainly consist of

three documents:• The balance sheet –provides a snapshot of the

[company’s] assets and the sources of money that was used to buy those assets.

• The income statement –is like a video. It shows how profitable the firm has been over the past year.

• The source and Use of Funds –gives an overview on how cash has been generated or raised and thereafter reinvested or paid back.