Reference no: EM132386543

What is your contribution/thought on this forum below.

It would be advisable to look at a company's financial statments. Nickels, W., Mchugh J., and McHugh, S. (2019, p. 449) states " the firm's financial statements- its balance sheet, income statement, and statement of cash flows- form the basis for financial analyses preformed by accountants inside and outside the firm." These all are what stands for the business, whether or not the company is making the money to continue and to make money without fear of the future.

Murphy (2019, para. 2) states " Investors and financial analysts rely on financial data to analyze the performance of a company and make predictions about its future direction of the company's stock price. One of the most important resources of reliable and audited financial data is the annual report, which contains the firm's financial statements." All the statement show all that a company's been through. It can show the bad and how well it handled it and the good. It's important to see where your money is going and where it will go. along with if the company is making the money they need to make sure everything is paid for and to see what profit is being made. Every investor wants some kind of profit, so they know that they can make money with a certain business.