Summary:
This is a acticle called
Connection:
The connection i made between the article and chapter 15 is that both of them are about the financial statement. The book is gaining a basic knowledge of financial statements, and we applying this knowledge when choosing or assessing investments. And the book also teach us about the calculation of ratios and percentages.
Reflection:
After i learned this chapter, i know that if i want to invest a company, I will look at the financial statement first. It gives us the ability to understand th numbers and simpler of financial ratios, and be able to use that knowledge to assist them to make better desicions.
2 comments:
Hi, TING!
I am Wayne. I am extremely agreeing your point. Financial Statement is pretty important to all the investors. It’s tell is potential of a company, and it identifies rather the company is earning or losing money. For example, the common- size financial statement could compare the two companies which investors are interest, because it converts all the amounts into percentage. We can’t compare $100 and $10000 cash, but we can compare them as a percentage to the total assets. Sometimes a company who has $100 is better than another one who has over $10000.
Hey, Ting:
I think that the people can judge it from the numbers on assets, liabilities, profits, and losses of every company right? Are we also make the number into the percentages instead of just seeing about the number to decide how health the company is? Anyways, I think i will look at the financial statement first when i want to invest a company as you do. Thank you for showing us the extra information about the financial statement out of our textbook.
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