What information does it provide to the business owner

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Finances and lack of money are the main reasons that all businesses fail. Suppose your roommate, a Spanish major, tells you they have just inherited the family business from their grandparents. They know you are a business student who is studying entrepreneurship. Describe and explain how the following 4 financial analysis tools can help the small business owner avoid going out of business due to lack of money.

1. Income statement - what is it and what information does it provide to the business owner?

2. Balance sheet - what is it and what information does it provide to the business owner?

3. Statement of cash flows - what is it and what information does it provide to the business owner?

4. Ratio analysis - what is it and what information does it provide to the business owner?

Reference no: EM132890298

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