A good manager is aware of how both cash and profits affect a balance sheet. A balance sheet shows if a company is financially healthy.
The balance sheet answers the following questions:
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How much does the company owe, and how much does it own? Debt versus equity. It’s just the kind of thing a loan officer would want to know about you in deciding if you are a good credit risk.
A normal corporate balance sheet has two sides. On the left side are the assets (inventories, recei...
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