Financial Statements Essay

1318 WordsJul 6, 20116 Pages
Running head: Financial Statements Board of Directors: Financial Statements Name Insert Affiliation Here Board of Directors: Financial Statements | Eddison Electronics Company | Memo To: Board of Directors From: CC: Executive Management Team Date: Re: Financial Statements Financial Statements The most important function of a corporate business financial analyst is supplying the Board of Directors and the executive management team with vital financial information necessary to the management of the corporation. To ensure that all members of the Board of Directors and the executive management team are aware of what financial information I will be supplying, I will talk about four of the main financial statements that I will be supplying to them. I will also talk about how the information contained within these statements is capable of being utilized for the planning and control of the corporation. Balance Sheet The first financial statement I will be talking about is the balance sheet. The balance sheet is basically a summary of the corporation’s financial situation at a certain point in time. The balance sheet “balances the firm’s assets (what it owns) against its financing, which can be debt (what it owes) or equity (what was provided by owners)” (Gitman, 2005). To ensure that everyone understands what a balance sheet looks like and what information may be included, I have provided a model of a balance sheet. (My Own Business, 2010). As you can see a balance sheet does not have to be difficult to understand however, it is possible for them to become complex due to all the different assets and liabilities a corporation may have. Next I will talk about how a balance sheet and the information it contains is capable of being utilized for the planning and control of a corporation. A balance sheet provides vital information to assist in the

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