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DECISION MAKING - Coggle Diagram

- - - - With this data, the company can learn other less obvious realities that require an analysis process. We will mention only a few of them:
        • Profit or loss for the year or desired period. • Sales volume and its distribution, both spatial and temporal as well as by product class. • Profitability of the different items that make up the product range. • Solvency of the company, that is, its financial availability to face contingencies. • Return on investment, that is, on capital, used in the operation.
      - Indeed, the basic control needs require the following accounting books and financial statements: • The newspaper and auxiliary journals. • The greatest and the greatest auxiliaries. • The balance. • The income statement. • The financial statements of origin and application of funds (flow of funds). • The cash book.
        
        Therefore, you need to know: • What you are going to invest in, how much money and in what way. • When and how will you return the capital received.
        
        With this information, the company will be able to control its collections and payments, its expenses and income and its financial needs, and it will be able to set its objectives and make its forecasts.