A business starts with an idea and a product or service. Eventually the idea blossoms into profit and continual growth of the company. This obviously is not the situation with every business which is formed, but more of the ideal outlook a business owner or manager is determined to fulfill. To fulfill this dream of a budding business one day becoming an industry leader, certain tools are at a manager�s disposal. The most important of those tools are the financial statements and managerial reports which tell the story of the business in a clear cut financial standpoint. Analysis of these reports allows those in decision making positions the ability of applying the knowledge learned to help the business get on the right track or move forward with grander plans. Accountants have three basic types of financial statements at their disposal in order to access the profitability and or debt of a business. These three statements are the income statement, the statement of cash flows, and the balance sheet. Block & Hirt state, �The income statement is the major device for measuring th......

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