COMM 103 Chapter Notes - Chapter 14: Profit Margin, Accounts Receivable, Positio

• School: Queen's University
• Department: Commerce
• Course: COMM 103
• Professor: Gregory Libitz

Document Summary

Analyzing and i(cid:374)te(cid:396)p(cid:396)eti(cid:374)g fi(cid:374)a(cid:374)(cid:272)ial state(cid:373)e(cid:374)ts is (cid:449)at e(cid:374)a(cid:271)les a (cid:373)a(cid:374)age(cid:373)e(cid:374)t tea(cid:373) to (cid:862)keep its fi(cid:374)ge(cid:396)s o(cid:374) the pulse(cid:863) of the o(cid:396)ga(cid:374)izatio(cid:374). Gross profit margin is the po(cid:396)tio(cid:374) of a(cid:374) o(cid:396)ga(cid:374)izatio(cid:374)"s (cid:396)e(cid:448)e(cid:374)ue that is left o(cid:448)e(cid:396) after the organization has paid the direct costs (wages, components, materials, etc) associated with its products or services. Profitability margin is the portion of an o(cid:396)ga(cid:374)izatio(cid:374)"s revenue that is left after all operating expenses associated with its products or services have been paid. In analyzing the current financial situation of a company, managers generally rely on three primary financial statements: the statement of comprehensive income, the statement of changes in financial position, and the statement of cash flows. Operational transactions represent the flow of money within the organization that is directly related to day-to-day business dealings. (revenue and expenses) Liquidity, solvency, efficiency, and capacity key focus of financial statement analysis.