Robert Lee Riley CPA, MBA-tax
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What to Look for in Your Business Financial Statement
Copyright Robert Lee Riley, all rights reserved, do not
duplicate without permission of author.
...how much income are you generating? What is your
gross profit and what is your net profit?
...how much cash is tied up in accounts receivable, and
when can you expect to receive it?
...how much do you owe for merchandise, rent, equipment,
and for loans payable?
...what are your expenses including payroll, taxes,
merchandise, advertising, equipment, repairs, insurance,
and employee benefits?
...how much cash do you have on hand? How much cash
is tied up in inventory?
...what is your gross profit margin? On average are the
jobs profitable before administrative expenses.
...which of your service or product lines is profitable?
...how frequently do you turn over your inventory? (Sales
divided by inventory).
...to be continued as time permits, check back.