The Power of Financial Statement

To be a great leader having a lot of subordinates or people in the corporates, surely this group of people would hope and demand for better benefits and rewards, and in return provides remarkable results throughout the years and ages of services.

As for leader how to get all the resources and to make everyone is happy within the corporation?
Since a business transaction or dealing would probably involve at least two parties to happen. How well established with the other party and how the other party bring sales to your business is utmost important to avoid wasting strength and time to the wrong party.

In terms of financial statement, any changes in the financial statement, would indicate the healthy
of the financial strength, success, and profitability with a measurement of the success or failure of its current management and business strategies, by comparing years of financial statement. Providing that you are coming from the same industry, reading other parties financial statement within the same industry is much more easier to start with.

In other words, with those information, any good or bad intention would probably take place to make other party intense or prosper in a much faster way.

Email me for me to guide you how to read financial statement in an easy way. stevenglobal@yahoo.com

I love to watch Red Cliff Part 1 and 2, that the survival of the corporate depends on the skill and strategies within its corporate. We could be evil and good as human does change side along the way if we SEE the corporation are COMBINING the running high in borrowings, running low in cash flow, and running negative or low on operation profit AND it would be dramatic as RED CLIFF whether to squeeze it or alliance with it.



The Balance Sheet:
A snapshot of the financial health of a company.

The Income Statement:
The measurement of profitability in operation.

Statement of Stockholder Equity:
Reconciliation of beginning and ending balances of both stockholder equity and the retained earnings accounts.

Statement of Cash Flows
Summarize of the money generated from and spent by the business.


Q09 : How does a company survive? and how long?
问09: 公司如何能生存?维持又可多久呢?
The most important is the costing method, the low price buying and the high price selling to achieve yearly profit before tax. After that, the fixed assets would create the value or decrease the value of the business.
The company would survive provided,

a) got more investor
b) refinance the fixed assets
c) support by the government
d) support by related companies or holdings company
e) support by business or corporate friends.

最重要的是成本计算法,低廉的价格购买,销售价格高,销售每年实现税前利润。之后,确定固定资产创造价值或降低了企业的价值。公司能够生存下去,也许得到了更多的投资者,再融资的固定资产,政府的支持,相关公司或控股公司, 企业交情以周转。

Q10 :If the business is making losses, how could we turn it into profitable business?
问10: 如果企业是亏损的,怎么可能把它成为赚钱的生意?

If it is unable to generate gross profit, look for costing
If it is unable to generate net profit before tax, look for enormous expenses
If it is unable to generate revenue, look for sales strategy
If it is involve borrowings, look for fixed assets value
If it is involve bonds, probably better cashflow option than  borrowings.
and etc...
如果无法获得毛利率,该寻找成本计算法
如果无法获得除税前纯利,该寻找庞大开支在费用上
如果无法取得营业额,该从销售策略
如果涉及贷款,该看看固定资产价值
如果涉及债券,可能是更好的现金流量的选择....
等...



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