What steps financial statements analysis framework take

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Question - Some companies, like Apple, like to sit on colossal amounts of cash. Their strategy is to have this money built up so that they can remain financially solvent even if some pretty catastrophic things happen to the economy. However, other companies prefer to invest their money if they can do so by buying stocks, acquisitions or mergers while remaining financially healthy. For example, computer chipset manufacturers like Intel upgrade their factories and equipment on a regular basis. These upgrades are extremely expensive, and while they are a good long-term investment, the company in question must make sure they have the short-term cash flow to support these kinds of moves.

Required -

a) Do you think a company like apple would require financial reporting or financial analysts?

b) In your opinion, do you think companies carry out financial reporting the same way?

c) What steps would financial statements analysis framework take?

Reference no: EM132986532

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