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.