COMM 103 Lecture Notes - Lecture 3: Cash Flow Statement, Retained Earnings, Balance Sheet

• School: Queen's University
• Department: Commerce
• Course: COMM 103
• Professor: Gary Bisonnette

Document Summary

Question for discussion: best statement of organization future financial capacity. Balance sheet: current ratio, retained earnings, cash reserve how much you can spend, a/r to a/p relationship, debt/equity relationship. Question for discussion: an organization"s forward guidance can be best assessed by reviewing : Performance benchmarks driven from budgets and sales forecasts. Balance sheet, income statement, cash flow statement not so good because it is historical data. Ratio snapshot of a specific time. Need to have a longer term comparison. Less volatility = more control in cash flow. Potential of revenue flow to be tapped.