Financial Planning, Budgeting, and Forecasting: Financial Intelligence Collection (7 Books)

CHAPTER TWO

Financial Statements

The Elements of Managerial Finance

Key Topics Covered in This Chapter

•Balance sheets

•Income statements

•Cash flow statements

•Financial leverage

•The financial structure of the firm

WHAT DOES YOUR COMPANY OWN, and what does it owe to others? What are its sources of revenue, and how has it spent its money? How much profit has it made? What is the state of your company’s financial health? As an HR professional, the more you know about these matters, the better you can see how HR policies and initiatives affect your firm’s profitability—and the better you can identify ways to boost the bottom line.

This chapter helps you answer such questions by explaining the three essential financial statements: the balance sheet, ...