what is your contribution/thought on this forum below.

As a potential investor in a firm or perhaps to buy a particular business, it would be advisable to evaluate the company's financial statements. The reasons it would be advisable is because you would want to know the business you would be putting your money into. There are many company's that go under or face fraud. First, one should have a few strategies on how to review it all. "Determine a value chain analysis for the industry, the chain of activities involved in the creation, manufacture and distribution pf the firm's products and/or services" (Par.1).Reviewing all the statements is relevant to accounting standards. " Evaluation of the statement of cash flows helps in understanding the impact of the firm's liquidity position from its operations, investments and financial activities over the period in essence, where funds came from, where they went, and how the overall liquidity of the firm was affected" (Par.3). However, analyzing current profitable risk with any type of business would be a smart move in the right direction. "The most common analysis tools are key financial statement rations relating to liquidity, asset management / coverage and risk/market valuation (Par.4). The downfalls is the trust in the company. Trust in the numbers, trust that it'll be a good investment. Furthermore, if anyone invest in a company it should always be evaluated.