It is important to note the key differences between these two financial statements to help you efficiently gauge the health of your company. With a balance sheet in hand, you can find information about how much money the business has spent, and how much debt the company owes. Investors and business owners can use it […]

However, the car manufacturer must take into account whether cars are as popular as trucks and if they can sell as reliably. If trucks are much more popular than cars, then some cars might not be sold, and the trucks could be the better option for making income. Corporate decision-makers must take many variables into […]

It provides a foundation for various financial analyses and facilitates better decision-making in managing costs and maximizing profits. It excludes indirect costs such as rent, utilities, and administrative expenses. invoice template for excel By excluding indirect costs, prime cost provides a more accurate picture of the direct costs of producing goods. Basically, the prime cost […]

It is calculated by taking a company’s (1) net income, (2) adjusting for non-cash items, and (3) accounting for changes in working capital. The details about the cash flow of a company are available in its cash flow statement, which is part of a company’s quarterly and annual reports. The cash flow from operating activities […]

A balance sheet is a comprehensive financial statement that gives a snapshot of a company’s financial standing at a particular moment. A balance sheet covers a company’s assets as defined by its liabilities and shareholder equity. A company’s balance sheet is a financial record of its liabilities, assets and shareholder’s equity at a specific date. […]