Discuss the pros and cons of using the various measures of profitability to examine a company’s performance.
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A balance sheet would provide you with a snapshot of the current situation, which you’re able to see the value of the assets and liabilities. It also gives you a view of whether there was increases or decreases within the profits. When it comes to the income statement it enables you to measure profits over a specific timeframe. Allowing you to view when the company’s profits are going up and down, accessing how the company’s performance was each quarter. Thus you can make adjustments from quarter to quarter or year to year. Lastly the statement of cash flow is a financial statement that shows change in data regarding cash flow in and out that the company
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