Financial Analysis

Okay, we know entrepreneurs take risks... risks for the sake of profit. Clearly, business owners do their best to get the best (highest) return on investment. This comes in the form of profits (money), employee recruiting efforts, employee retention strategies, training/coaching, and overall business development. All of this requires money and business owners need to decide the most efficient allocations of their financial and human capital resources. Discuss how a business can measure and manage its financial resources. What are the primary distinctions between the following financial analysis tools? Discuss each item along with how and when a business would use these reports. Profit & Loss Statement (Income Statement) Balance Sheet Statement of Cash Flow Be sure to include specific examples to support your thoughts and ideas.

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