This financial performance analysis creates a foundation for making more informed and reliable financial projections. However, we understand that financial forecasting can be challenging for many business owners. Scenario planning is useful in many instances, but it is most useful when trying to understand the level of upcoming risk. Additionally,…

At the declaration date, a journal entry is made to debit retained earnings and credit dividends payable. This reduces shareholders’ equity through retained earnings, representing previously undistributed profits, and creates a liability reflecting the obligation to pay shareholders. This affects liquidity and financial ratios, such as the current ratio. The…