Discover how different depreciation methods affect long-term asset values and short-term earnings, plus key assumptions that influence financial health.

Discover where retained earnings appear in financial statements, and understand their impact on business reinvestment and dividend payouts.

A vertical analysis is used to show the relative sizes of the different accounts on a financial statement. For example, when a vertical analysis is done on an income statement, it will show the top ...

Start by looking at cash flow from operations, the section that tells you how much money the company’s main business is actually generating. If that number is positive and growing over time, it’s ...

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Income statements detail revenue, expenses, and net income from top to bottom. Reading starts with revenue, deducts expenses, and ends with net income. Subtotal figures help identify missing account ...