Learning how to read a financial statement does not have to be as difficult as it seems according to Carlos Hank Rhon. If you can follow directions for a recipe or fill out a loan application, you should be able to understand how to read a financial statement, it may seem to be overwhelming at times but it really is not as bad as it seems. The first thing that you should know is that there are four main types of financial statements out there. They are balance sheets, income statements, cash flow statements and statements of shareholder’s equity. Balance sheets are designed to show us what a company owns and what they owe at a fixed period in time, notes Carlos Hank Rhon. An income statement will show you how much money a company has made over time and how much they have spent out. Cash flow statements show us the exchange of money between the company and other businesses or individuals and the statement of shareholder equity show all changes in the interests of the company’s shareholders over a certain period of time............Read More
Content Source: Carlo Hank Rhon Understanding Financial Statements
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