Business Analysis Ii Essay
To be a successful business, strategic planning must occur. Businesses do not survive long without the ability to successfully manage finances. Companies must monitor processes against the plans and make adjustments as necessary. It is necessary to review and balance financial statements often. Financial management is a comprehensive tool that monitors and can improve a company’s success. These conditions may adversely affect consumers, mortgages, investments, investment banking, etc. The following financial analysis is based on comparisons for 2010 balance statements (entire year) for Bank of America, and Wells Fargo, and JPMorgan and Chase Co. Bank of America is one of the world's largest financial …show more content…
The primary financial statements are: the balance sheet, it reflects a company’s assets and liabilities; the income statement summarizes the organization’s revenue; and the statement of cash flows reports cash receipts and disbursements related to an organization’s operations, investments, and financing. These are all used to determine an investors decision and are key factors in determining management decisions.
Balance Sheet Analysis
A balance sheet is a base summary of the company’s financial status. The balance sheet has three parts: liabilities, assets, and ownership equity. “The main categories of assets are usually listed first and typically in order of liquidity. Assets are followed by the liabilities. The difference between the assets and the liabilities is known as equity or the net assets or the net worth or capital of the