TN.CTE.C.2

Examine financial statements and analyze the effects of changing revenue and expenses on net income and assets. Identify trends within a company’s financial information and compare and contrast present performance to past performance, as well as to industry competitors and overall averages. Evaluate the impact of basic changes in current assets, liabilities, revenues, and net income on liquidity and profitability. For example, an increase in the cash in bank account will drive an increase in the current and quick ratios (liquidity) of a company. Based on the analysis, develop business strategies to improve liquidity and profitability.