Apart from the balance sheet, other methods to represent a company's financial data include the income statement and the cash flow statement. The income statement provides information about a company's revenues and expenses, giving insight into its profitability. The cash flow statement, on the other hand, shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities. Additionally, some companies use the statement of retained earnings to show changes in the company's retained earnings over time. Furthermore, financial ratios and metrics, such as return on assets (ROA), return on equity (ROE), and debt-to-equity ratio, can also provide valuable insights into a company's financial health.

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Apple Inc. is a good example of a company that effectively utilizes its current assets to cover short-term obligations. The company has a high current ratio, which indicates that it has more current assets than current liabilities. This means that Apple can easily cover its short-term obligations using its current assets, which include cash, inventory, and receivables. The company's effective management of its current assets is one of the reasons for its financial stability and success.

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Financial Statements Presentation

How to clearly show the performance of your organization with numbers? The three financial statement...

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