Which financial statement should investors examine to determine whether the company is reinvesting a sufficient portion of the current year's earnings to support future growth?

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lilmaddy8029 lilmaddy8029

25-08-2022
Business

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Which financial statement should investors examine to determine whether the company is reinvesting a sufficient portion of the current year's earnings to support future growth?

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tutorconsortium214 tutorconsortium214 · Answer 1 · 2022-09-23T09:00:44+02:00

One of the Financial statements, the balance sheet, shows a company's assets and liabilities at a particular point in time and is used to determine if it is reinvesting enough of its earnings from the current year to support future growth.

What is a Financial statement?

An organization's business operations and financial performance are described in financial statements, which are written records. Government organizations, accounting companies, etc., regularly review financial statements to ensure accuracy and for taxes or investment considerations. Types of Financial statements:- For-profit organizations' four fundamental financial statements are the balance sheet, income statement, cash flow statement, and statement of changes in equity. A similar but distinct set of financial statements is used by nonprofit organizations., which are written records.

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