Financial statements of any company help them to keep a detailed record of their monetary status and their future prospects. These sample statements are of great use to the company, their shareholders, creditors and the managers. A financial statement though being an historical document gives a clean-cut idea about the monetary condition of the company. While a shareholder may decide whether or not to invest anymore, a creditor may feel secured or become apprehensive about the repayment of their debts.
They may also increase or decrease their interest rates based on these sample statements.The most important use of these sample statements are perhaps for the managers of the company. Depending on these statements the managers get to know their present status and in this way they plan their investments and policies for future. Financial statements include the comparison of financial data’s of all other companies and evaluating the financial ratios.
The sales of the company, its profits and losses are decided solely based on these statements. The method of evaluating financial statements can be different in various organizations; nevertheless, they play a substantial role in the evaluation process. The statements despite being tentative in nature speak a lot when it comes to the financial health of a company.
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