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Mastering Financial Statements for Entrepreneurial Success

Learn how to analyze income statements, balance sheets, and cash flow statements to make informed financial decisions for your business, with insights from Mr. Bernstein's expert guidance. Discover the importance of financial ratios and trends analysis.

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Mastering Financial Statements for Entrepreneurial Success

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  1. Entrepreneurship Mr. Bernstein Analyzing Your Finances, pp 450-456 December 2018

  2. EntrepreneurshipMr. Bernstein 3 Primary Financial Statements Income Statement Advertising Cash Flow Statement Ledger Balances Balance Sheet

  3. EntrepreneurshipMr. Bernstein 3 Primary Financial Statements Income Statement reports Profit/Loss Balance Sheet reports Assets & Liabilities Cash Flow Statement reports cash receipts and disbursements Lenders and Investors use these statements as scorecards of desirability

  4. EntrepreneurshipMr. Bernstein Comparing Financial Statements Understand Trends Lenders and Investors will CARE!

  5. EntrepreneurshipMr. Bernstein Comparing Financial Statements Who do you expect to have higher earnings next year? Lenders and Investors have CHOICES!

  6. EntrepreneurshipMr. Bernstein Comparing Financial Statements Which company has better control of their SGA (Sales & General Administrative Expenses)? Lenders and Investors can compare you to other businesses

  7. EntrepreneurshipMr. Bernstein Important Financial Ratios: Current Ratio Current Assets /Current Liabilities = Current Ratio Shows the ability to pay bills quickly From the Balance Sheet Ratio of 2:1 or higher is considered strong

  8. EntrepreneurshipMr. Bernstein Important Financial Ratios: Debt Ratio Total Liabilities / Total Assets = Debt Ratio Shows the percent of the business which is being financed by creditors (lenders) From the Balance Sheet

  9. EntrepreneurshipMr. Bernstein Important Financial Ratios: Working Capital Current Assets – Current Liabilities = Working Capital Shows the capital available to immediately use in operations From the Balance Sheet

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