...financial information; the two main sources for retrieving such information are the balance sheet and income statement. The balance sheet also provides a wealth of information that enables the organization to determine its stability, vitality, and profitability through utilizing ratios. Ratios can determine the overall performance of the company through such things called liquidity, leverage and profitability. Balance Sheet The balance sheet outlines the the financial and physical resources that a company has avaliable for business activities in the future; it is typically used to determine its current financial position than it’s future. The balance sheet lists the assests , libilitites and stockholders equity. Assets are the econominc resources owned by the company and liabilities are the organization’s debts or obligations; both are extremly important in determining the health of the organization....
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