Write a summary of what the financial statements indicate about the company’s financial health and performance.
A. Purpose: Discuss the accounting process and the resulting financial statements as they relate to meeting the informational needs of the user.
B. Process: Explain the process used to produce accurate account balances and financial statements from the individual transaction data.
i. Consider what is being communicated through each of the financial statements you prepared (income statement, statement of equity and balance sheet) and how this information will be used in business decision making and planning.
C. Analysis: Explain the company’s cash position, its net income as a percentage of sales, and its current liabilities to current assets position.
D. Results: Discuss the results regarding profitability of the first month of operations.
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