Summary Report: Financial Statementssouthern New Hampshire U

Summary Report: Financial StatementsSouthern New Hampshire University 02:22:24 GMT -05:00IntroductionThe purpose of this report is bookkeeping for the first month of a new service business that just opened. I created a financial statement that included and income statement which calculates net income, stockholders’ equity statement which contains a summary and finally a balance sheet to make sure assets and liabilities even out. Financial statements are imperative in success for a company, showing line by line their strengths and weaknesses.Financial Statement AnalysisThis financial analysis has been calculated using the financial statements for the opening month of this company. While looking at the income statement, we can see this company total revenues were $6,225.00, the net income was $3224.17 which is 51.8% in sales and finally the expenses finalizing at 3000.83 and 48.2% of sales. When calculating the current ratio of liquidity, I removed the long-term loan liability to get a more accurate answer. With the 125,000 long term loan taken out of the equation and leaving only $410.00 for liability the calculated current ratio came to 44.3. This companies’ liabilities show lesser than their assets which means they are starting off in the right direction towards financial