If there is anything a business owner should know is the hidden things in a company’s balance sheet.

A really good way to get to know and learn about a company is to review their balance sheet.  Here’s what you can find:

  • Inventory flow and status
  • Sales and cost of goods sold
  • Negative liabilities
  • Assets and negative receivables

By looking at the balance sheet along with the P/L (profit and loss statement), your impression of the company’s finances will come into sharper focus.