Question

PLEASE HELP ITS URGENT

Why do you think investors want to see a company's income statement before investing? What sort of information do investors learn from the income statement? What advice would you give someone who is considering investing in a company if one or more factors in the income statement are of concern?

Answer 1

1. Investors would want to see a company’s income statement because that’s shows how the company is doing financially.

2. Investors learn if the company is making a profit or if it’s in debt just by looking at the income statement. For example; increased revenue or reduced expenses.

3. A piece of advice I’d give to someone looking into investing into a company with a concerning income statement is to not work with them. Investors are supposed to receive some type of return in their money when investing into a business. If the company is loosing money instead of making it, the investor is most likely not going to gain any returns. It’s best to invest into a business with a stable financial performance to get the best out of your money.

Hope this helps you!!! Good luck in business