Why analyze financial statements? As an organization, how do financial statements contribute to the decision making process? As an individual investor, how are financial statements helpful when making investment decisions? If you wanted to invest $1,000 in a soft drink company, and you narrowed your choice down between Coke and Pepsi, where would you look to find each company’s respective financial statements? Based on the most current company information, which company would you choose and why?
Answer:
Why analyze financial statements? As an organization, how do financial statements contribute to the decision making process.
Answer:
You can identify the strength and weakness of the organization by analyzing the Financial statement. It show the financial performance of the company and we can also compare the performance with the other company performance in the same industry
As an individual investor, how are financial statements helpful when making investment decisions
Answer:
If you are individual investor then financial; statement will mostly helpful to you. By analyzing the financial statement ,you can understand that how the management run the company and how they can make future decision. You can determine the value of business
If you wanted to invest $1,000 in a soft drink company, and you narrowed your choice down between Coke and Pepsi, where would you look to find each company’s respective financial statements? Based on the most current company information, which company would you choose and why?
Answer
Coca-Cola has, earnings is much higher than Pepsi. company is larger and it is able to maintain its current profit margins more than its competitors.
PEPSI company differs from COCA COLA because it has diversified company with larger snack segment
Coco cola recent net Income and dividend level is more than Pepsi
So in total we could say that, we can defiantly invest in COCA COLA
