Financial Reporting and Analysis Using the FIN Model: Do Better and Better
In Chapters 11 and 12, we created and then utilized the Statement of Profit and Loss and the Statement of Cash Flows to determine cash needs and to develop an investment and valuation strategy for a company. In this chapter, we continue to examine the data presented by these operating statements, and I’ll introduce the third essential financial statement, the Balance Sheet. We will further examine the relationship among these three key financial statements and discuss methods to analyze the data presented by them. This will take some of the mystery out of profit, loss, cash flow, and the Balance Sheet.